Marks and Spencer Group PLC Marks & Spencer completes acquisition of Gist (3731B)
September 30 2022 - 05:55AM
UK Regulatory
TIDMMKS
RNS Number : 3731B
Marks and Spencer Group PLC
30 September 2022
Marks & Spencer completes acquisition of Gist as part of
accelerating its Food supply chain transformation
Further to the announcement on 21 July 2022 , Marks and Spencer
Group plc confirms that the acquisition of Gist, the principal
contract logistics provider to M&S Food, completed on 30
September 2022. Since signing in July, all necessary merger control
approvals have been obtained and the separation of businesses not
forming part of the acquisition target have completed.
Stuart Machin, Chief Executive, Marks & Spencer said :
"Today's completion marks a step forward in our multi-year
programme, which will transform our entire supply chain. We have
been open about the limitations of our legacy contract with Gist
and through this decisive acquisition we have removed that
impediment to our growth. We can now take full control of our food
supply chain for the first time in M&S history and invest in a
fit for the future logistics network."
Additional information
The acquisition of Gist constitutes a Class 2 transaction for
M&S under the UK Financial Conduct Authority's Listing Rules.
For the purposes of LR 10.4.1 R, the Gist business acquired had
gross assets of approximately GBP305.7m as at 31 December 2021
(this number includes GBP51.4m of cash that was not acquired by
M&S as part of the transaction) and generated a proforma EBITDA
of c.GBP55m for the year ended 31 December 2021.
For further information, please contact:
Investor Relations:
Fraser Ramzan: +44 (0) 7554 227758
Jack Cook: +44 (0) 20 3882 5535
Media enquiries:
Corporate Press Office: +44 (0) 20 8718 1919
-Ends-
About Gist
Gist is a time-sensitive, temperature-controlled contract
logistics business, offering customers primary logistics (from
supplier to depot) and secondary logistics services (from depot to
store). Gist has an overall employee base of approximately 5,500
and has worked with M&S as its principal customer for decades
and provides the majority of M&S Food logistics services under
a long-term contract via a network of 8 primary and 10 secondary
distribution centres located across the UK and the Republic of
Ireland, including a number of freehold warehouses. It also
provides a limited number of logistics services for third parties
as well as freight forwarding for BOC. Gist's food service division
will remain with BOC post completion with appropriate transitional
service agreements in place to ensure business continuity.
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences and prospects are "forward-looking
statements" within the meaning of the United States federal
securities laws. These forward-looking statements reflect M&S's
current expectations concerning future events and actual results
may differ materially from current expectations or historical
results. Any forward-looking statements are subject to various
risks and uncertainties, including, but not limited to, failure by
M&S to predict accurately customer preferences; decline in the
demand for products offered by M&S; competitive influences;
changes in levels of store traffic or consumer spending habits;
effectiveness of M&S's brand awareness and marketing
programmes; general economic conditions including, but not limited
to, those related to the Covid-19 pandemic or a downturn in the
retail or financial services industries; acts of war or terrorism
worldwide; work stoppages, slowdowns or strikes; and changes in
financial and equity markets. For further information regarding
risks to M&S's business, please consult the risk management
section of the 2022 Annual Report (pages 47-57).
The forward-looking statements contained in this announcement
speak only as of the date of this announcement, and M&S does
not undertake to update any forward-looking statement to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
No statement in this announcement in intended or should be
interpreted to mean that earnings or earnings per share for the
current or future years will necessarily match or exceed the
historical published earnings or earnings per share for
M&S.
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END
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