Tesco has taken over two suppliers to its Fresh & Easy business in the US.
Wild Rocket Foods and 2 Sisters Foods followed Tesco to the US when it launched, providing fresh produce and meats from two facilities adjacent to the Fresh & Easy distribution centre outside Los Angeles.
The retailer has now taken over the companies’ US operations in a deal Fresh & Easy boss Tim Mason said was worth “tens of millions of dollars”.
Mason told the Financial Times the deal would create “synergies and economies by putting the management teams of the units together”.
“We think will be very beneficial for the business,” Mason said, adding that the move underlined Tesco’s commitment to the US, where it has struggled to turn a profit.
Mason admitted the two suppliers had not performed as well as their owners had hoped. Around 750 staff will join Tesco’s US payroll as a result of the takeovers.
Fresh & Easy plans to open 50 new stores in the financial year ending April 2011.
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