Hilton Food Group buys foodservice meat supplier Fairfax
By Josh White
Date: Friday 29 Oct 2021
(Sharecast News) - Hilton Food Group has acquired UK foodservice meat supplier Fairfax Meadow Europe from Argent Holdings, it announced on Friday, for £23.8m.
The FTSE 250 company said Fairfax Meadow was established more than 40 years ago, and supplies some of the largest businesses in the UK hospitality and travel sectors.
It said the business operates from four meat processing and packing facilities in Derby, Milton Keynes, North London and Southampton, and was now recovering "strongly" following the impact of Covid-19, as the UK hospitality and travel sectors fully reopened.
The board said the acquisition of Fairfax Meadow would improve Hilton's access to the out-of-home channel, harnessing existing partnerships and contributing to further sustainable growth for the business.
It said the company's development into the foodservice sector would ensure that Hilton was the "protein partner of choice" for customers across more mealtimes and meal occasions.
Hilton said it paid cash consideration of £23.8m, taking into account adjustments for net debt and normalised working capital.
The acquisition was funded from the group's debt facilities.
Hilton said the acquired business generated an EBITDA loss of £2.3m in the year ended 31st December 2020, after adjusting for exceptional items and reflecting the significant impact of Covid-19, and an EBITDA profit of £4.4m in the year ended 31 December 2019.
The combined value of its gross assets was £20.1m as at the end of 2020, based on audited statutory accounts prepared under UK GAAP.
Hilton said the acquisition constituted a class 2 transaction under the UK Listing Rules.
"I am very pleased to announce the acquisition of Fairfax Meadow, the leading meat supplier to the UK foodservice sector," said chief executive officer Philip Heffer.
"This transaction is all about growth - Fairfax Meadow represents a great opportunity for Hilton to expand into an adjacent and growing foodservice sector in the UK.
"It is another step towards our goal of becoming the protein partner of choice for every meal occasion - offering high quality, affordable, and rigorously sourced proteins for customers and consumers here in the UK and across the world."
At 0830 BST, shares in Hilton Food Group were up 0.61% at 1,165.05p.
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