Tesco Takes Over Fresh & Easy Suppliers - Financial Times

22nd Jun 2010 07:17

LONDON (Dow Jones)--U.K. supermarket Tesco PLC (TSCO.LN) is taking over the U.S. operations of two key suppliers to its fledgling Fresh & Easy business after its slower-than-expected expansion, the Financial Times reports Tuesday. Tim Mason, the head of the Fresh & Easy business, told the newspaper it was a sign of its commitment to the U.S. business. While not large enough to require disclosure, he said the transaction involved "tens of millions of dollars" and "a real amount of money." The two suppliers--the privately owned Wild Rocket Foods and 2 Sisters Foods--agreed to follow Tesco to the U.S. some five years ago. The companies respectively provide fresh produce and meats from two facilities they built adjacent to Fresh & Easy's massive distribution centre some 50 miles east of Los Angeles, the report says. Mason told the newspaper the move would lead to "synergies and economies by putting the management teams of the units together...we think will be very beneficial for the business." Newspaper website: www.ft.com -London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320 (END) Dow Jones Newswires June 22, 2010 02:17 ET (06:17 GMT)