Fresh prepared foods supplier Geest has just announced it has signed a non-binding heads of agreement to acquire the trade and moveable assets of the prepared leafy salads manufacturing facility of G’s Marketing Ltd (GML). GML is a privately owned company and is the UK’s largest supplier of whole head lettuce and estimated to be the fifth largest supplier of prepared leafy salads to the major UK supermarkets.
The business associated with the assets being acquired had a turnover of £18.6 million for the financial year ending April 2004 and was profitable. GML will continue to grow and market whole head lettuce and will supply Geest with whole head lettuce for its prepared leafy salads business.
The value of the assets to be acquired is £2.2 million. Completion is expected at the end of March 2005 pending the outcome of due diligence which begins immediately. The business is expected to benefit from being part of a larger fresh prepared foods group and the acquisition is expected to be earnings enhancing in its first year of ownership.
Geest’s ceo, Gareth Voyle, said: ”Today’s marketplace requires us to become more efficient and we have made significant strides in the last year to achieve this. This complementary acquisition will help us to improve further our manufacturing efficiency as well as increase our exposure to strong consumer demand for fresh, healthy and convenient food.”
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