Blog: ABF buys Littlewoods
Catherine Sleep | 12 July 2005
The expansion of a clothing retailer does not normally make the headlines of just-food.com; however, I thought it was worth mentioning the acquisition of Littlewoods Stores. The UK clothing retailer was bought by Associated British Foods (ABF), which already owns discount high street clothing chain Primark.
ABF bought Littlewoods from LW Finance Limited for around £409m. The acquisition comprises 120 Littlewoods stores covering high street locations across the UK but excludes the homeshopping activities of Littlewoods.
ABF, maker of Twinings Tea and Silver Spoon sugar, intends to retain around 40% of the current retail selling space of the store portfolio, which it will convert to Primark. The company expects to sell the remaining stores to other high street retailers.
The acquisition could be considered a bold move amid the current weak high-street retail environment, but Primark has been performing consistently well despite this, mainly due to its extremely low prices, and its strong performance looks set to continue.
Analysts also said the move was good for ABF as it would decrease the company's dependence on its sugar business ahead of changes to the EU sugar regime.
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
Shares in Tyson Foods slumped on Friday, closing down almost 9% after an analyst claimed a lawsuit facing the company could hit the US meat titan....
- Analysis: Tyson's shrewd investment in Beyond Meat
- Thailand: convenience to continue to thrive
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: Some Foods on rise of low-FODMAP market
- Bel takes majority stake in MOM Group
- Mars launches Maltesers in the US
- Unilever in continuing price spat with Musgrave
- China milk powder arrests prompt Fonterra "review"
- Hochdorf expands in Africa with Pharmalys buy
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Packaged Food: Quarterly Statement Q3 2016
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review