Waitrose is hungry for Eat

By DAILY MAIL REPORTER
Updated: 17:19 EST, 29 March 2010

Waitrose may branch into a different type of retailing by gobbling up sandwich chain Eat for £100million.

It would be the latest aggressive move from the posh grocer in its bid to double sales to £10billion over the next decade.

The 100 chain eatery which sells sandwiches, soups, pies and drinks, was founded by Niall and Faith MacArthur in 1996. They now co-own Eat with private equity firm Penta Capital. Waitrose already has a relationship with Eat after brokering a plan to open its sandwich bars in supermarkets and to sell certain lines of Waitrose food in Eat stores.

Gobbled up: Watirose wants to branch out into the sandwich shop business by buying chain Eat

But it has been reported the talks have deepened as the two sides are trying to bash out a takeover deal.

Waitrose is Britain's fastest growing grocer, having overcome the downturn by launching its low cost Essentials range. It has also struck a licensing deal with Prince Charles's Duchy Originals, and is examining whether to sell some of Waitrose's own-brand stores through smaller retail chains.

Earlier this year Boots announced it would hand over some of its unwanted space to Waitrose.

In return the grocer will sell a range of Boots health and beauty goods in its shops.