(Alliance News) - Huddled Group PLC on Friday said it will acquire Food Circle Supermarket Ltd for up to GBP300,000.
Shares in Huddled rose 12% to 2.90 pence each in London on Friday morning.
The Nottingham, England-based investor in e-commerce brands said that the acquisition will comprise the entire stock, intellectual property, website and other social channels of Food Circle.
Food Circle is an online retailer based in Dinnington, South Yorkshire. In 2023, it delivered revenue of around GBP1.4 million.
The acquisition price of GBP300,000 comprises an initial cash payment of GBP100,000 and GBP50,000 worth of Huddled shares. A further GBP50,000 will be paid on the first anniversary of the acquisition, alongside an additional GBP100,000 subject to Food Circle meeting certain performance targets over the year.
According to Huddled, the acquisition is complementary to its Discount Dragon business and is "the next step in the group's strategy to build a portfolio of e-commerce brands."
Huddled Chief Executive Officer Martin Higginson said: "Food Circle is positioned at the intersection of a number of market trends; the continued search for value among consumers, the demand for e-commerce and direct delivery services, and the growth in health and nutrition products to support active lifestyles. It has developed important relationships with brands for whom responsible disposal of surplus stocks remains a priority, and this will remain a core mission for Food Circle."
By Sabrina Penty, Alliance News reporter
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Huddled Group (HUD)