Morrisons has acquired prepared vegetable supplier Simply Fresh Foods.
The first acquisition made under new chief executive Dalton Philips sees the Bradford-based retailer extend its distribution services by buying the Manchester company.
The UK's fourth biggest grocer confirmed the acquisition of the facility based in Worsley, Manchester, for an undisclosed sum, reports The Independent.
Morrisons runs 13 distribution centres and 13 manufacturing sites and the facility in Worsley will form part of Morrisons' manufacturing division.
Simply Fresh Foods is an existing partner with the retailer and is said to be a profitable business, supplying stir-fry mixes, prepared vegetables and ready-to-eat salad products.
It is expected that the site will provide a dedicated and distribution service to its more than 425 stores.
A Morrisons spokeswoman said: "We have taken the decision to expand our produce-packing capacity, acquiring the Worsley sites operated by Simply Fresh, which will supply packed vegetable lines."
She added this was to meet the demand from its 10 million weekly customers, as it moves from being a "national to nationwide" grocer.
Philips is set to deliver his first strategic thoughts on Morrisons’ future in September with speculation rife over whether he will decide on convenience stores, non-food or an online grocery position.
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