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16 Sep 2009 07:00
16 September 2009
SnackTime plc
("SnackTime" or the "Company")
Acquisition of MBM Business Systems Limited
SnackTime plc, one of the UK's largest national operators of snack and chilled drink vending machines, is pleased to announce the acquisition of MBM Business Systems Limited ("MBM"), which owns the trademarks and assets to Snack in The Box ("SITB") and operates the SITB franchise network.
SITB is a significant provider of vended snacks and chilled drinks to the workplace and is SnackTime's main UK and Eire competitor in the snack and chilled drinks vending market. Following the acquisition, SnackTime will have a network of over 20,000 customer sites across the UK and Eire, which it believes will be the largest snack vending network in the UK and Eire.
The acquisition is expected to be earnings enhancing in its first year of ownership and in addition will
provide significant economies of scale;
improve and widen SnackTime's customer delivery options; and
increase the Company's growth opportunities.
SITB was established 14 years ago and specialises in the provision of snack and chilled drinks to the workplace. The business services customers through franchisees who either operate vending machines or honesty boxes. SITB has in excess of 5,000 vending sites and 10,000 honesty boxes. SnackTime has acquired MBM for a cash consideration of £1.5 million and has agreed to retain key MBM directors with performance-related cash and share option bonuses. MBM reported revenue of £3.375 million and profit before tax of £301,000 for the year ended 31 March 2009 and had net assets of £108,000 as at 31 March 2009.
SnackTime is currently engaged in evaluating further acquisition opportunities in the UK and mainland Europe as it seeks to continue to grow both its operated and franchised snack and chilled drink vending machine network organically and by acquisition. In addition, the Company now offers hot drinks machines alongside its snack and chilled drinks vending machines.
Blair Jenkins, Chief Executive of SnackTime, commented
"This acquisition is another significant milestone for SnackTime in its growth plans. SnackTime is now a leading player in the snack and chilled drink vending sector in the UK and Eire and has the delivery platform to reach an even wider base of customers."
Enquiries
SnackTime plc 0118 773344
Blair Jenkins, Chief Executive
Julia Brand, Finance Director
Arbuthnot Securities Limited 020 7012 2000
Tom Griffiths / Alasdair Younie
Notes to Editors: -
SnackTime plc (AIM: SNAK.L), is the holding company of SnackTime UK Limited, which is one of the UK's largest national operators of snack and chilled drink vending machines. The group has thousands of sites located throughout the UK, which are serviced by its five main depots located in Cumbernauld (near Glasgow), Manchester, Alcester, Wokingham, and Belfast. Each main depot is responsible through a team of area managers, merchandisers and engineers for installing, maintaining and restocking all of the Group's vending machines.
The core element of the Group's business model is that it retains ownership of the vending machines, which are sited free on loan. The Group generates cash through sales of products from its vending machines and also from contributions from its Brand Partners, Mars, Britvic, PepsiCo (Walkers Crisps) and Coca-Cola.
SnackTime UK has four main types of vending machines. The Group decides on the appropriate style and size of vending machine which is installed in each customer's site so as to deliver a high level of customer service to maximise sales. The Group's customers include national retailers, such as Matalan, Argos, Homebase and Dunelm Mills, as well as a large number of offices and factories.
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