Bidcorp agrees to sell UK food logistics business to Tesco
Company to sell Best Food Logistics, which made headlines during the UK's chicken shortage, to Booker Group, a wholly owned subsidiary of Tesco
Food services firm Bidcorp said on Wednesday it agreed to sell its UK logistics business Best Foods to a subsidiary of Tesco, for an undisclosed amount.
The sale is still subject to approvals, including from competition authorities, and may take months, the company said.
The sale to Booker Group will have no material effect on Bidcor’s results to end-June 2020, having been classified as a discontinued operation in the group’s 2019 results.
Bidcorp, which separated from Bidvest and listed on the JSE in May 2016, suffered a setback in the UK market when KFC’s parent company, Yum Brands, ended a long-standing contract with Bidvest Logistics, now known as Best Food.
But in 2018, KFC stripped DHL of some of the deliveries and went back to Bidcorp after a public outcry after delivery problems left hundreds of restaurants without chicken.
Bidcorp had committed to discontinuing its UK contract distribution business in December 2017, considering it a noncore activity. With Siseko Njobeni