Woolworths buys 65% stake in Australian food services firm for $400 mln

19Views

August 19, 2020

Australia’s biggest grocer Woolworths said on Wednesday it is paying A$552 million ($399.4 million) for about two-thirds of PFD Food Services and its properties as the coronavirus pandemic reshapes the industry.

Woolworths will pay A$302 million for a 65% stake of PFD and A$249 million for 26 freehold properties that will be leased back to the country’s second-biggest food service firm, which will continue to be run by current management.

The decision to move deeper into the food distribution and service market follows a partnership with PFD in April when there was a pandemic-sparked rush on supermarkets as customers looked to stock up on essentials.

The stake will give PFD, a family-run business whose CEO is Kerry Smith, access to Woolworths’ supply chain network and e-commerce offerings, while helping the supermarket chain with store product localisation.

Woolworths said the deal also includes three-year put and call options for the remaining 35% of PFD from the Smith family.

While PFD earnings have been hit by the pandemic, Woolworths expects the deal to support earnings from the first full year, and will be funded out of existing cash reserves and debt facilities.

Also Watch

Sushant Death Probe: What Is The Supreme Court Likely To Rule On Jurisdiction War? | CNN News18

($1=1.3822 Australian dollars)

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f3caa51ebd3817406535ead
[youtube_id] => 4MzqvZPMo9Q
Woolworths buys 65% stake in Australian food services firm for $400 mln => Sushant Death Probe: What Is The Supreme Court Likely To Rule On Jurisdiction War? | CNN News18
)

[1] => Array
(
[id] => 5f3ca691082aa874143e18d5
[youtube_id] => c6THmSkI_-U
Woolworths buys 65% stake in Australian food services firm for $400 mln => Prof Allan Lichtman Predicts Donald Trump Will Lose White House To Joe Biden | CNN News18
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-16T10:06:05.000Z&publish_max=2020-08-19T10:06:05.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Woolworths buys 65% stake in Australian food services firm for $400 mln

Also Watch

Speak Your Mind

LEAVE A REPLY Cancel reply

Get in Touch

Recommend for You

Oh hi there It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

You might also like

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

About Us

Follow Us

Support Us & Be a Patreon

Add QNewsHub to your Homescreen!

Oh hi there
It’s nice to meet you.