Fortress-led investment group acquires Morrison for £9.5 billion

Three private investment groups led by Fortress, a subsidiary of SoftBank, reached a £9.5 billion deal to acquire Wm Morrison, the fourth largest supermarket chain in the UK.

According to the terms of the transaction announced on Saturday morning, Fortress and a division of the Canadian pension fund CPPIB and Koch Industries will pay 252 pence per share and support a special dividend of 2 pence to purchase the grocery store. Before accounting for 3.2 billion pounds of net debt, it valued Morrison’s equity at 6.3 billion pounds.

Two weeks ago, the Bradford-based group said it rejected the private equity group Clayton, Dubilier & Rice’s initiative to offer 230 pence per share.

The Fortress-led bid valued Morrisons stock at a 42% premium to the company’s pre-disclosure price CD&R methodThis transaction marks the latest and largest example of this year’s private equity fund’s frantic acquisition of a UK listed company.

Morrisons Chairman Andrew Higginson said: “We studied Fortress’ approach, their business plan, and their role as the owner of a unique British food manufacturer and shop owner with more than 110,000 colleagues and in the UK The important role of overall adaptability. Food production and agriculture.”

He added: “We know very well that Fort has a full understanding and appreciation of Morrison’s basic characteristics.”

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