Symington’s acquired by Italian food company
3 min readThe acquire of the Leeds-based mostly ambient foodstuff producer includes nicely-acknowledged snacking manufacturers this sort of as Mug Shot, Naked and Ragu. Symington’s also generates very own-label solutions for best supermarkets.
Rumours bordering the sale of Symington’s commenced circling in February this year, with a price tag tag of involving £80m to £100m reportedly on the table. On the other hand, there ended up doubts that the ambient food producer would protected a offer at the larger conclude of the scale.
In a presentation on the offer, Newlat claimed Symington’s Uk distribution platform was at working at around 70{52b57ece99d8ad65266f7d1bf734f606b94a24ca6add8968b2fb1797b2130515} capacity and ‘could be utilised for the distribution of Newlat’s foodstuff pasta and bakery category’.
Pasta purchasing
Newlat extra: “Symington’s is paying for circa £7m of pasta as raw elements. Newlat Foods has c.40{52b57ece99d8ad65266f7d1bf734f606b94a24ca6add8968b2fb1797b2130515} of spare capability and the industrial awareness to cover all recipes and formats.”
The corporation claimed Symington’s present investing relationship with Walmart in the US could be developed by the addition of Newlat products.
“The optimization of the capacity could leave just one of the Symington’s creation vegetation free of charge to grow to be a pure pasta production plant,” it additional.
David Cox, Symington’s main executive, stated: “Newlat desires to invest in our company and our brand names. It presents lengthy-phrase security for our business with an intercontinental ambient and dairy food items player working in mutually beneficial types and is an fascinating time for us equally.
Growth internationally
“By bringing with each other both of those corporations we can incorporate our strengths, speed up our advancement and maximize our global footprint. Symington’s delivers a robust springboard for Newlat’s brands into the Uk market place and Newlat offers us more prospects for us to expand our brands internationally in which Newlat has operations – in Italy and Germany.”
Shown on the Italian Inventory Exchange, Newlat is one particular of Italy’s premier producers of milk and milk products and solutions, pasta and child food and employs much more than 1,500 customers of employees throughout 14 creation crops in Italy and just one in Germany.
Newlat chairman Angelo Mastrolia added: “This is an interesting small business with high potential for development and we deem it to be a excellent fit into our strategic approach. We see a quantity of synergies between our enterprises as we the two deliver complementary but different types of goods.
Placing foot in the United kingdom
“Not only will there be important price tag synergies but also, this acquisition allows us to enlarge and diversify our products array and our geographical arrive at. This chance enables us to set foot into the United kingdom and consequently consolidate our placement in this extremely suitable marketplace.
“We are all set to commit in the enterprise and to guidance its international enlargement.”
Symington’s employs about 900 people today throughout four areas (3 factories and 1 distribution centre) in Leeds, Bradford and Durham. Very last year, it claimed a sales maximize of 4.2{52b57ece99d8ad65266f7d1bf734f606b94a24ca6add8968b2fb1797b2130515} to £114m and a 17.5{52b57ece99d8ad65266f7d1bf734f606b94a24ca6add8968b2fb1797b2130515} uplift in earnings prior to tax, interest, depreciation and amortisation to £9.2m.
In the meantime, healthy snack bar producer Wholebake has been obtained by financial commitment fund Elysian Capital III, as portion of the latter’s acquire of mother or father corporation Healthful Holdings Group from Bridges Fund Management.
