US firm to acquire Morrisons as takeover deal unanimously backed by board

UK supermarket chain Morrisons has agreed a takeover deal with a US firm.

The retailer has reached agreement on the terms of a recommended all cash offer by Fortress, owned by Bidco, for the entire issued, and to be issued, share capital of Morrisons.

The all cash offer (including more than £3bn of equity capital) from Fortress has been unanimously recommended by the Morrisons directors.

Andrew Higginson, chairman of Morrisons, commented: “The Morrisons Directors believe that the Offer represents a fair and recommendable price for shareholders which recognises Morrisons’ future prospects.

“It’s clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons. This, together with the very clear intentions they have set out today, has given the Morrisons Directors confidence that Fortress will support and accelerate our plans to develop and strengthen Morrisons further.

“Fortress, CPP Investments and KREI all have strong track records and a long-term approach to investing. They are backing our strategy, our management and our people. Morrisons has a rich history and a special culture and I am convinced that with the long term support of Fortress, the business will continue to prosper in the future.”

Joshua A. Pack, managing partner of Fortress, added: “We believe in making long-term investments focused on providing strong management teams with the necessary flexibility and support to execute their strategy in a sustainable and value enhancing manner.

“We fully recognise Morrisons’ rich history and the very important role Morrisons plays for colleagues, customers, members of the Morrisons Pension Schemes, local communities, partner suppliers and farmers.

“We are committed to being good stewards of Morrisons to best serve its stakeholder groups, and the wider British public, for the long term.”