THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
Retail Solutions
Food & Drink
Tesco to buy wholesaler Booker

Tesco has announced that it has reached an agreement to buy food wholesaler Booker in a £3.7 billion deal.


Tesco to buy wholesaler Booker

Tesco has announced that it has reached an agreement to buy food wholesaler Booker in a £3.7 billion deal.

In a statement the supermarket giant said the combined group will be well placed to serve the established 'in home' food market as well as the faster growing 'out of home' food market.

Booker is also the owner of the Londis and Budgens supermarket brands.

Dave Lewis, Tesco chief executive, 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 deal will see Booker shareholders receive 0.861 new Tesco shares and 42.6 pence in cash for each Booker Scheme share. Based on Booker’s closing share price on 26 January, the deal values each Booker share at 205.3 pence to mark a premium of approximately 12% to the closing price.

On completion of the merger, Booker chief executive Charles Wilson and Booker chairman Stewart Gilliland will join the combined group's board. Wilson will also join the executive committee.

Wilson said: "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 shareholders will hold around 16% of the combined group.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy