Morrisons' Property Portfolio, Wholesale Business Make It Attractive To Private Equity
Morrisons' £8 billion property portfolio, coupled with its vertically integrated supply chain and wholesale structure, make it a "very attractive" business for private equity investors, a leading retail analyst has suggested.
Ross Hindle, retail sector analyst at Third Bridge, was commenting following the retailer's accepting of a takeover offer from Fortress Investment Group, which values the business at £6.3 billion (€7.34 billion), however other groups, such as Clayton, Dubilier & Rice (CD&R) and Apollo Global Management are also poised to play their hand. Even online giant Amazon could throw its hat into the ring.
Morrisons posted a 2.7% increase in like-for-like sakes in the first quarter of its financial year.
Morrisons' Property Estate
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