Hilton Food Group has announced it is to acquire HFR Food Solutions Limited, a sous vide manufacturer based in Wednesbury, West Midlands, UK.
The transaction, which will see Hilton acquire the entire share capital of HFR, is scheduled to complete on 28 February.
Hilton said that the acquisition enables it to enter the ‘fast-growing sous vide market’ and leverage its expertise in procurement and manufacturing in a new segment.
Broaden The Offering
"This acquisition represents an exciting opportunity for Hilton to broaden its offering in a fast-growing segment of the market and meet our customers' demands for Hilton to supply them with a range of innovative, high quality sous vide products,” commented Hilton executive chairman Robert Watson.
Elsewhere, HFR director Graham Heffer added that the acquisition will enable HFR to “benefit from Hilton's expertise, improve its operations and continue to focus on giving our customers the right products at competitive prices."
The enterprise value of HFR will be calculated by applying a multiple to average EBITDA over the three year period up to and including 28 February 2022. It is estimated that the actual deferred consideration payable by HFL will be approximately £3.3 million but the final amount will depend on the performance of the HFR business.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.