Bradford-based grocer pitches its Myton manufacturing arm to Sainsbury’s and other supermarket rivals as it tries to grind down a £3.1bn debt pile inherited from its 2021 private equity takeover.
Morrisons is in advanced conversations with rival British supermarkets to start supplying them with own-brand pies, meat and eggs produced by its Myton manufacturing division, as chief executive Rami Baitiéh hunts for fresh sources of revenue to ease the grocer’s heavy debt burden.
The Bradford-based chain, one of the so-called Big Four, is understood to have ushered buyers from competing retailers into a Myton factory in recent weeks, with Sainsbury’s among the grocers to have toured production sites previously. The push marks a notable shift in posture: Morrisons has historically guarded the output of its 17 UK manufacturing sites as a competitive moat, but is now willing to feed rivals’ shelves if it brings in profitable third-party volume.
Myton is one of the country’s largest food manufacturers and produces Morrisons’ sweet and savoury pie ranges, while also sourcing meat, fish, eggs and even flowers for the supermarket. It already serves a clutch of independent retailers and is now being pitched to large hospitality groups as well, with showcase events held in recent months to highlight its British-made credentials.
£3.1bn debt overhang from the CD&R takeover
The wider strategic context is hard to ignore. In its most recent set of accounts, covering the 52 weeks to 26 October, the grocer posted a pre-tax loss of £381m after absorbing a £281m interest bill on its borrowings. Net debt stood at £3.1bn at the year-end, an overhang from the £10bn leveraged buy-out by US private equity firm Clayton, Dubilier & Rice in 2021.
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