Morrisons’ private equity owners will carve up the business and sell £500m worth of manufacturing and distribution sites.
Clayton, Dubilier & Rice is appointing advisers to oversee the disposal of the plants in a process set to begin ‘imminently’, according to Sky News. When CD&R bought the supermarket group in October for £7bn, the New York-based buyout house pledged not to engage in major sales and leasebacks of stores.
The pledges apply for a year, but do not cover manufacturing and distribution facilities. The £500million property sale will be one of the biggest shake-ups at the supermarket since CD&R took over. The deal was orchestrated by former Tesco boss Terry Leahy, who now works for the private equity group.
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It comes after Morrisons yesterday warned Russia’s invasion of Ukraine will hit sales and profits this year. The grocer said the war is adding to inflation and denting consumer confidence and spending, which will hurt the sector.
It said sales and profits have been lower since the start of February and is ‘unable to predict’ how long the disruption will last.
Morrisons, the UK’s fourth biggest supermarket behind Asda, Sainsbury’s and Tesco, has been consistently losing share since falling into private equity hands in October.
Source: This is Money
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