Bidcorp is to sell off Best Food Logistics to Tesco subsidiary Booker Group.
The sale, announced today, is subject to approval from the UK Competition and Markets Authority, which is expected to take several months to come to a decision.
If the sale goes ahead it will increase Booker’s footprint in the catering sector. The food wholesale operator distributes branded and private label goods to over 400,000 customers, including independent convenience stores, grocers, pubs and restaurants.
Tesco revealed the deal as it announced its interim results today. The retailer said of Booker: "Building on the organic growth since merger (£0.7bn additional sales to date), we are announcing today the acquisition of the assets and operations of Best Food Logistics for a nominal consideration, adding a further £1.1bn additional foodservice sales."
Read more
- Best Food Logistics set to be sold by November, parent group Bidcorp reveals
- Best Food Logistics wins DHL’s KFC work; but parent company still seeking sale
- Bidvest Logistics rebrands as Best Food Logistics
Best Food Logistics returned to profitability this year after it won back its KFC distribution deal earlier this year, which it had lost to DHL in 2017.
The company, formerly known as Bidvest, also landed a significant deal with Pizza Hut in August. Other customers include Pret a Manger and Burger King.
Bidcorp has been seeking a buyer for some time for Best Food Logistics, as part of its wider strategy to divest itself of its UK logistics activities, which saw it sell PCL Transport to Arla Foods in April.
An earlier attempt by the South African food services giant to sell Best Food Logistics in September last year failed after the potential buyer pulled out of the deal.
Best Food Logistics, which has operating licences for over 540 trucks and 140 trailers, has its headquarters in Royton, Oldham and operates depots in Banbury, Taunton, Hoddesdon and Larbert in Scotland.
