Hilton Food Group acquires Fairfax Meadow Europe Limited
Hilton Food Group has announced the acquisition of UK meat supplier Fairfax Meadow Europe Limited from Silver Holdings Limited.
The acquisition will improve Hilton’s access to the out-of-home channel and ensure the company is the protein partner of choice for customers through more meal hours and dining opportunities.
Commenting on the deal, Hilton CEO Philip Heffer said, âThis transaction is about growth. With its award-winning reputation, Fairfax Meadow represents an excellent opportunity for Hilton to expand into an adjacent and growing food service.
sector in the UK.
âWe look forward to leveraging Hilton’s expertise, reputation and investments to grow and grow the Fairfax business, and we plan to offer Hilton’s wide range of products, including vacuum products, seafood and alternative proteins, to Fairfax customers. “
Founded over 40 years ago, Fairfax Meadow supplies meat to some of the largest hospitality and travel companies in the UK.
The company operates from four meat processing and packaging facilities in Derby, Milton Keynes, North London and Southampton.
Hilton paid a cash consideration of Â£ 23.8million for the acquisition, taking into account adjustments for net debt and
normalized working capital.
The deal was funded by the group’s credit facilities, the company added.
Fairfax Meadow generated an EBITDA loss of Â£ 2.3million in the year ended December 31, 2020, after adjusting for one-off items and the impact of COVID-19. It posted a positive EBITDA of Â£ 4.4million in the year ended December 31, 2019.
Based on the audited statutory accounts prepared in accordance with UK GAAP, the combined value of its gross assets was Â£ 20.1 million as of December 31, 2020.
The agreement includes the business and assets of Tendercut Meats Limited, which were transferred to Fairfax Meadow on March 31, 2021.
The acquisition constitutes a Class 2 transaction under UK listing rules, noted Hilton.
“A fantastic opportunity”
Fairfax Meadow Managing Director Penny Tomlinson said: âWith Hilton’s expertise in supply chain, quality management and leading sustainability standards, as well as our long-standing reputation for excellence in butchery and catering, this is a fantastic opportunity.
âI am excited about the next step in our development as I continue to lead Fairfax Meadow within the Hilton family and see the positive impact for our teams, customers and suppliers. I would like to thank Argent Food Group for their support in making Fairfax Meadow the UK’s favorite butcher-caterer.
Elsewhere, Hilton Food Group said in a business update that business had been in line with board expectations in the last quarter.
The company continued to develop its business in Australia and Asia-Pacific by implementing its growth strategy and continuing to expand into various protein categories.
In Europe, the company made good progress in a number of markets, with overall regional revenue relatively stable for the quarter, reflecting the increase in restaurant consumers following the restaurant reopening.
The company saw growth in its slow cooking business in the UK, as well as in Central Europe, with continued growth in fresh food volumes at both Tesco and Zabka.
Last month, the company agreed to acquire the remaining 50% of Dalco Food BV, a manufacturer of vegan and vegetarian foods based in the Netherlands.
Â© 2021 European supermarket magazine – your source for the latest supply chain news. Article by Dayeeta Das. Click on subscribe register for ESM: The European magazine for supermarkets.