Last checked at 7 Feb 2020 15:53
7 February 2020
Volvere plc
Acquisition
Volvere plc ("Volvere"), the growth and turnaround investment company, is pleased to announce the acquisition of certain of the assets of Indulgence Patisserie Limited ("Indulgence"), which is in administration, with a view to carrying on the trade of that business as a going concern ("the Transaction"). The trading assets will be held in a wholly owned subsidiary of Volvere, which will trade under the name Indulgence Patisserie Limited ("Newco"). The property assets will be held in a separate wholly owned subsidiary of Volvere.
Indulgence's principal activity is the manufacture of premium desserts for the retail and foodservice markets. It was founded in 1988 and operates from one leasehold and three freehold properties in Colchester, Essex. It employs approximately 30 staff. In the management accounts of Indulgence for the 8-month period ending 31 December 2019, its unaudited revenue and loss before tax were £3.3 million and £0.23 million respectively. Indulgence has a number of clients in common with Shire Foods Limited, Volvere's pastry products business, and it is expected that there will be opportunities for both businesses arising from the Transaction.
Consideration and Deal Structure
Volvere is acquiring the assets of Indulgence for a cash consideration of approximately £1.25 million ("Consideration") and will also make a working capital facility available to Newco.
The estimated fair value at completion of the net assets being acquired, which relates principally to the freehold properties and plant and equipment, is not expected to be less than the Consideration.
Commenting on the Transaction, Jonathan Lander, Chief Executive Officer of Volvere, said "We are delighted to be making this investment in a well-known, highly-regarded desserts manufacturer. As well as offering the customers of both Indulgence and Shire Foods a broader product portfolio, the investment strengthens Volvere's manufacturing base. We are looking forward to working with Indulgence's customers and staff and building on their progress to date."
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Forward-looking statements:
This announcement may contain certain statements about the future outlook for Volvere plc. Although the directors believe their expectations are based on reasonable assumptions, any statements about future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
For further information:
Volvere plc
Jonathan Lander, Chief Executive
Tel: + 44 (0) 20 7634 9700
www.volvere.co.uk
Cairn Financial Advisers LLP
Sandy Jamieson/James Lewis
Tel: + 44 (0) 20 7213 0880