Marks & Spencer has purchased logistics provider Gist as it bids to take control of its end-to-end food supply chain

Gist lorry outside M&S store

Gist provides the majority of M&S Food logistics services via eight primary and 10 secondary distribution centres

The retailer is buying the entire share capital of Gist for an initial cash offer of £145m, with a further £110m plus interest to be payable on certain conditions – including the ability to retain the brand’s freehold properties.

The move is the latest part of M&S’ multi-year plan to modernise and revamp its food supply chain to support growth, with bigger stores and multiple franchise partners. The retailer launched its supply chain optimisation programme, Project Vangarde, in 2020 to increase efficiency. 

Gist provides the majority of M&S Food logistics services via a network of eight primary and 10 secondary distribution centres across the UK and Ireland, including freehold warehouses.

M&S chief executive Stuart Machin said: “M&S has been tied to a higher-cost legacy contract, limiting both our incentive to invest and our growth. The last two years have shown what can be achieved by working collaboratively alongside our partners at Gist. 

“This has given me confidence that now is the time to take action and remove an impediment to our growth. We have therefore acted decisively to acquire Gist, taking control of our food supply chain for the first time in our history. This is the first step in a multi-year plan that will transform the entire supply chain.”

Gist generated pro forma EBITDA of around £55m in the year to December 2021, with the majority of its profit reflecting management fees recharged to M&S under its contract.

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