Leading UK supermarket chain Tesco has agreed a £3.7bn deal to buy major food wholesaler Booker Group, which supplies a number of independent on-trade outlets and chain restaurants.
The merger means Tesco will be in a position to supply pubs and restaurants for the first time, as Booker’s customer base includes hospitality businesses like Byron Burger, Wagamama, Carluccios, and Prezzo.
Tesco Chief, Dave Lewis, said, “Tesco has made significant progress in turning around our UK retail business.
“This merger with Booker will further enhance Tesco’s growth prospects by creating the UK’s leading food business with combined expertise in retail, wholesale, supply chain and digital.
“Wherever food is prepared and eaten – ‘in home’ or ‘out of home’ – we will meet this opportunity with the widest choice and best service available.”
The announcement saw Tesco shares jump 10%. After the merger, Booker shareholders will own 16% of the combined business
Charles Wilson, Booker CEO, added, “Booker is committed to improving choice, prices and service for the independent retailers, caterers and small businesses that we are proud to serve.
“We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.”
Booker also owns Premier, Budgens and Londis convenience-store brands.
