Supermarket giant Tesco has agreed to purchase UK-based cash and carry business Booker in a deal worth GBP3.7bn (US$4.66bn).
According to Tesco, Booker Group, which also operates the Londis and Budgens retail stores, services 700,000 small businesses, including pubs and restaurants. As part of the deal terms, Booker shareholders will own around 16% of the combined entity.
“Tesco has made significant progress in turning around our UK retail business,” said Tesco CEO Dave Lewis. “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 Booker Group lists around 18,000 product lines, including fresh and frozen food, beers, wines, spirits and tobacco. The group comprises Booker Wholesale, Makro, Booker Direct, Classic Drinks, Ritter Courivaud, Chef Direct, Premier, Family Shopper, Budgens, Londis and Booker India.