(Reuters) - British retailer Marks and Spencer said on Thursday it will acquire its main logistics provider Gist Ltd for an initial consideration of 145 million pounds ($173.06 million) in an all-cash deal.
A further amount of 85 million pounds plus interest will be payable in cash from the proceeds of the intended onwarddisposal of freehold properties or on the third anniversary of completion of the deal, M&S said in a statement.
“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,” Chief Executive Officer Stuart Machin said.
Thoughts? M&S has always had an extremely complicated supply chain. This might be a great thing or just make it more complicated
I don’t get it.
They’re paying a fortune upfront to tie themselves to all the aggro and overheads of running an in house road transport operation.
With it exposure to the government’s anti road transport crusade.
They also don’t even get the benefit of any real estate asset sales from the deal because GIST keeps that.
I’m not aware of M and S share holders being consulted let alone giving a go ahead on the deal.
From memory MandS’s most profitable times were all based on out sourced transport notably BOC in the day.
As opposed to the old joke how do you make a small fortune from running trucks start off with a large one.
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retail.
In this case M&S use Gist for the food contract and DHL and XPO on the clothing side. Does this mean all the food depots are going to be in house M&S or will it still be run by Gist and they are simply owned by M&S.
tmcassett:
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retaíl
No not at all, in fact more & more seem to be bringing it in house
tmcassett:
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retaíl
No not at all, in fact more & more seem to be bringing it in house
That’ll be because everyone seems to make a pigs ear out of the job
Have M&S done this to keep control of their supply chain? sensible, maybe they had reason to think Culina might hoover Gist up and wanted to keep their own trusted distribution under direct control as the prime customer.
Juddian:
Have M&S done this to keep control of their supply chain? sensible, maybe they had reason to think Culina might hoover Gist up and wanted to keep their own trusted distribution under direct control as the prime customer.
Maybe there might be something in that? Seeing as M&S have never run their own transport and have worked with Gist for decades, it does seem a little odd to now want to buy and control it.
Gist press release says very little tbh.
GIST
Linde and M&S have reached an agreement for M&S to acquire Gist Ltd (UK) & Gist Distribution Ltd (ROI).
We are delighted with the news today that Gist is being acquired by M&S.
While the ownership of Gist will change, Gist will retain its identity and continue to operate as a separate business.
We continue to work in partnership with all of our existing customers, delivering the same services and solutions as we do today.
That tells us very little other than saying nothing will change and it will continue to operate as a separate company.
Juddian:
Have M&S done this to keep control of their supply chain? sensible, maybe they had reason to think Culina might hoover Gist up and wanted to keep their own trusted distribution under direct control as the prime customer.
Maybe there might be something in that? Seeing as M&S have never run their own transport and have worked with Gist for decades, it does seem a little odd to now want to buy and control it.
Gist press release says very little tbh.
GIST
Linde and M&S have reached an agreement for M&S to acquire Gist Ltd (UK) & Gist Distribution Ltd (ROI).
We are delighted with the news today that Gist is being acquired by M&S.
While the ownership of Gist will change, Gist will retain its identity and continue to operate as a separate business.
We continue to work in partnership with all of our existing customers, delivering the same services and solutions as we do today.
That tells us very little other than saying nothing will change and it will continue to operate as a separate company.
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Sounds more like Linde wanted to offload Gist, maybe the fuel bill was scaring their shareholders??
tmcassett:
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retaíl
No not at all, in fact more & more seem to be bringing it in house
That’ll be because everyone seems to make a pigs ear out of the job
Yeah it’s like a bad omen when you put the logo of one of the too-big-to-fail ‘leading logistics providors’ on your building [emoji53]
Linde and I believe BOC before them, have been trying to sell the transport for years, when I was at Wincanton rumour was they were going to buy it, but M&S blocked it at the last minute.
Gist has been trying to expand its none M&S work, so it wasn’t so ■■■■■■■ to M&S.
Sixties boy:
Linde and I believe BOC before them, have been trying to sell the transport for years, when I was at Wincanton rumour was they were going to buy it, but M&S blocked it at the last minute.
Gist has been trying to expand its none M&S work, so it wasn’t so ■■■■■■■ to M&S.
When Linde bought BOC which encompassed Gist in 2006 they did put Gist up for sale but then took it back off sale from an article I read. No mention of them trying to sell it again after that I have heard about until this.
tmcassett:
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retaíl
No not at all, in fact more & more seem to be bringing it in house
I think more and more big companies, including supermarkets, are beginning to realise that reliability and level of service is possibly more important than having it done at absolute minimum cost.
trucken:
I think more and more big companies, including supermarkets, are beginning to realise that reliability and level of service is possibly more important than having it done at absolute minimum cost.
This -M+S have had problems in their supply chain over the last few years ( there are court cases ongoing at the moment ) they are simply acting to secure their supply chain and bring it under their control. They don’t like publicity so as usual press statements are short and to the point .
tmcassett:
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retaíl
No not at all, in fact more & more seem to be bringing it in house
I think more and more big companies, including supermarkets, are beginning to realise that reliability and level of service is possibly more important than having it done at absolute minimum cost.
That’s kind of an oxymoron to some degree as the staff will still be the same people, some will change as always as people will jump ship and some new ones will come aboard. But the business still has mostly the same staff and works in the same way with the same kit it did before etc. The only real difference being the supermarket owning the business themselves.
tmcassett:
I’m confused, don’t all the supermarkets and retailers use 3rd party companies for their transport operations and supply chains so they can concentrate on their side of the business which is retaíl
No not at all, in fact more & more seem to be bringing it in house
I think more and more big companies, including supermarkets, are beginning to realise that reliability and level of service is possibly more important than having it done at absolute minimum cost.
That’s kind of an oxymoron to some degree as the staff will still be the same people, some will change as always as people will jump ship and some new ones will come aboard. But the business still has mostly the same staff and works in the same way with the same kit it did before etc. The only real difference being the supermarket owning the business themselves.
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Yes and when the supermarket want their stuff covered who do you think will take priority?
The issue with DHL at our place was that they priced it thinking they could use the tesco frozen fleet to fill in gaps/backhaul for other contracts meaning stuff was out of place for the actual contract work and service levels dropped - bear in mind they aren’t just any old curtain sider trailer.
When the brown stuff eventually hit the fan and DHL had to run it as awarded they soon found they couldn’t make it pay because they’d priced it too low thinking they be able to assimilate with other works and eventually had to hand it back which is when it became in house
