EDDIE Stobart Logistics has retained the contract to service seven of Tesco's distribution centres.

The haulage firm has held the contract since 2012, having previously worked for the supermarket giant on a pay-as-you-go basis.

The value of the deal has not been disclosed.

A spokesman for Tesco said: "Following an extensive tender process, we have awarded our existing outsourced UK distribution centre transport operations contract to Eddie Stobart.

"We would like to thank all vendors involved in the tender and look forward to our ongoing co-operation with Eddie Stobart."

The haulier started as an offshoot of an agricultural contracting business in Hesket Newmarket in the 1970s, is now a national brand with 2,000 trucks, 3,400 trailers, 4,600 employees and 6.1m sq ft of warehousing.

DBay Advisors, a private equity firm in the Isle of Man, bought 51 per cent of Eddie Stobart Logistics in 2014. Stobart Group, which used to own the whole business, retains a 49 per cent stake.