British retailer Marks and Spencer said on Thursday that it would acquire its key logistics services provider Gist Ltd for £145 million in an all-cash deal as it seeks to take control of its food supply chain.
The deal, which is expected to add to the company's profits next year, will help M&S navigate supply chain snags and optimise costs at a time inflation has been soaring.
"M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. We have therefore acted decisively to acquire Gist," Stuart Machin, chief executive officer said.
The company has been looking to overhaul operations by improving product quality and investing in technology and e-commerce to restore its balance sheet.
M&S earlier in the day said its finance chief, Eoin Tonge, during whose term shares jumped 44%, will exit the company to join Primark-owner Associated British Foods.
Shares in M&S pared some early losses to trade down 2%.
The retailer said on Thursday that its finance and strategy chief Eoin Tonge will be leaving the company to take up a new role at Primark-owner Associated British Foods.
The move comes after a series of top management changes.
Last month, M&S named Alex Freudmann, former managing director of Australian beer, wine, and spirits retailer Dan Murphy's as its new food boss, succeeding Stuart Machin, who was promoted to group chief executive in May.