Hilton Food Group has announced that it has acquired UK-based meat supplier Fairfax Meadow Europe Limited from Argent Holdings Limited.
The acquisition will improve Hilton’s access to the out-of-home channel and ensure that the company is the protein partner of choice for customers across more mealtimes and meal occasions.
Commenting on the deal, Hilton CEO, Philip Heffer, said, “This transaction is all about growth. With its award-winning reputation, Fairfax Meadow represents a great opportunity for Hilton to expand into an adjacent and growing foodservice
sector in the UK.
“We look forward to leveraging Hilton’s expertise, reputation and investment to grow and expand the Fairfax business, and we plan to offer Hilton’s broad product range, including sous vide, seafood and alternative protein products, to Fairfax’s customers.”
Established over 40 years ago, Fairfax Meadow supplies meat to some of the largest businesses in the UK hospitality and travel sectors.
The business operates from four meat processing and packing facilities in Derby, Milton Keynes, North London and Southampton.
Hilton has paid cash consideration of £23.8 million for the acquisition, taking into account adjustments for net debt and
normalised working capital.
The deal has been funded from the group’s debt facilities, the company added.
Fairfax Meadow generated an EBITDA loss of £2.3 million in the year ended 31 December 2020, after adjusting for exceptional items and impact of COVID-19. It posted a positive EBITDA of £4.4 million in the year ended 31 December 2019.
Based on audited statutory accounts prepared under UK GAAP, the combined value of its gross assets stood at £20.1 million as of 31 December 2020.
The deal includes the business and assets of Tendercut Meats Limited, which were transferred to Fairfax Meadow on 31 March 2021.
The acquisition constitutes a class 2 transaction under the UK Listing Rules, Hilton noted.
'A Fantastic Opportunity'
Managing director of Fairfax Meadow, Penny Tomlinson, stated, “With Hilton’s retail supply chain expertise, quality management and leading sustainability standards, together with our longstanding reputation for butchery and foodservice excellence, this is a fantastic opportunity.
“I am excited for the next stage of our development as I continue to lead Fairfax Meadow within the Hilton family and to see the positive impact for our teams, our customers and our suppliers. I want to thank Argent Food Group for their support in making Fairfax Meadow the UK’s favourite foodservice catering butcher.”
Elsewhere, Hilton Food Group said in a trading update that business has been in line with the board’s expectations in the latest quarter.
The company continued to grow its business in Australia and the Asia Pacific by implementing its growth strategy and continued expansion across various protein categories.
In Europe, the company made good progress in a number of markets, with overall regional revenue relatively flat for the quarter, reflecting the increase in the number of consumers eating out following the re-opening of foodservice.
The company reported growth in its slow-cooked business in the UK, as well as in Central Europe, with continued volume growth in fresh food across both Tesco and Zabka.
Last month, the company agreed to acquire the remaining 50% shareholding of Dalco Food B.V., a Netherlands-based vegan and vegetarian food manufacturer.