Tesco share price: Grocer takes full control of Harris + Hoole

Tesco (LON:TSCO) has taken full ownership of coffee chain Harris + Hoole, dispelling expectations that the retailer would exit the loss-making business.

When Tesco picked up a 49 percent stake in the artisan coffee business three years ago, the deal included an option to buy the rest held by Andrew, Nick and Laura Tolley. The blue-chip grocer has now purchased the remaining 51 percent for an undisclosed amount. A company spokesman said in a statement yesterday: “We can confirm we have acquired full ownership of Harris & Hoole. We have worked successfully with Harris & Hoole since investing in the business three years ago and will continue to partner with the management board in the future.”

The deal ends the debate over the future of Harris + Hoole, which some industry watchers expected to be sold off as part of Tesco’s turnaround efforts since Dave Lewis became chief executive almost 18 months ago.
Harris + Hoole now has 43 outlets, including 29 in Tesco stores, and employs more than 500 people. But losses widened to £25.6 million in the year to 1 March 2015, compared with £12.8 million in the year before as it opened more than 20 new coffee shops.
Tesco’s share price rose this morning but eased soon after the opening bell. As of 08:30 GMT, the stock was changing hands at 179.55p, 0.97 percent down intraday. Despite the decline, the supermarket was outperforming the FTSE 100 index, which meanwhile stood 2.06 percent lower at 5,555.33 points.
As of 08:43 GMT, Thursday, 11 February, Tesco PLC share price is 181.30p.