July 21 (Reuters) – British retailer Marks and Spencer (MKS.L) said on Thursday it would acquire its key logistics services provider Gist Ltd for 145 million pounds ($173.06 million) in an all-cash deal as it seeks to take control of its food supply chain.
The deal, which is expected to add to the company’s profits next year, will help M&S navigate supply chain snags and optimize costs at a time inflation has been soaring.
“M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. We have therefore acted decisively to acquire Gist,” Chief Executive Officer Stuart Machin said.
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The company has been looking to overhaul operations by improving product quality and investing in technology and e-commerce to restore its balance sheet.
M&S earlier in the day said its finance chief, Eoin Tonge, during whose term shares jumped 44%, will exit the company to join Primark-owner Associated British Foods (ABF.L). read more
Shares in M&S pared some early losses to trade down 2%.
($1 = 0.8379 pounds)
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Reporting by Eva Mathews in Bengaluru; Editing by Rashmi Aich
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