LONDON (Alliance News) - Fresh meat and food-to-go retailer Crawshaw Group PLC on Wednesday said it has sealed a deal to buy Gabbotts Farm Ltd for GBP3.9 million in cash from Cribbin Family Butchers (Holdings) Ltd.
Gabbotts Farm is the holding company for Gabbotts Farm (Retail) Ltd, which manages 11 butchers in the UK. The company generated earnings before interest, taxation, depreciation and amortisation of GBP0.8 million for the year to the end of December on revenue of GBP10.8 million.
Crawshaw said the deal will be immediately earnings accretive and provide it with exposure to the north west of England market.
"This acquisition provides a well established retail portfolio and factory operation in a new geographical region which is an integral part of our expansion strategy and the start of our exciting journey of achieving 200 stores. Furthermore, the operational synergies and the new supply chain network can rapidly enhance sales and profitability," said Crawshaw Chief Executive Noel Collett.
Shares in Crawshaw were up 4.6% to 57.00 pence on Wednesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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