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(Alliance News) - Hilton Food Group PLC on Friday revealed it has purchased UK meat supplier Fairfax Meadow Europe Ltd in a GBP23.8 million deal and that the group's own trading remained in line with internal expectations.
The purchase of the catering butcher from Argent Holdings Ltd was funded from the company's debt facilities. Fairfax was loss-making in 2020, but Hilton Food said the business is recovering strongly as the UK hospitality and travel sectors fully reopen. Fairfax Meadow recorded a loss before interest, tax, depreciation and amortisation of GBP2.3 million in 2020, swung from an Ebitda profit of GBP4.4 million in 2019.
"This transaction is all about growth," said Hilton Chief Executive Officer Philip Heffer. "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. It is another step towards our goal of becoming the protein partner of choice for every meal occasion."
Hilton Food said its own trading for the period from July 19 to date has been in line with expectations, driven predominantly by the rollout of its growth strategy in Australia and Asia Pacific, as well as through continued expansion across a range of protein categories.
In Europe, the FTSE 250-listed food packaging firm said it continued to make good progress in a number of markets with overall regional revenue relatively flat for the quarter. It said the performance reflected the increase in the number of consumers eating out following the re-opening of food service. Still, Hilton remarked that it has seen growth in the slow cooked business in the UK, as well as in Central Europe, with continued volume growth in fresh food across both Tesco and Zabka.
"The group's financial position remains strong, and we continue to explore opportunities to invest in and to grow the business in both domestic and overseas markets," the company said.
The Cambridgeshire-based firm will announce its full-year results on January 2.
Shares were trading up 1.4% to 1,174.00 pence each in London on Friday morning.
By Will Paige; willpaige@alliancenews.com
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