Italian food company Newlat Food has agreed to purchase UK-based branded meal and snack manufacturer, Symington’s Group, for a total consideration of £53 million.
Founded in 1827, Symington’s is a supplier of branded and own-label foods including soups under the Mug Shot brand, Twistd couscous and rice-based meals, and Ragu pasta sauces.
Other brands in the Symington’s portfolio include Naked instant noodles, The Hungry Elephant meal kits and Chicken Tonight sauces – which are sold mainly in the UK, US and Australia.
The acquisition will see Newlat Food utilise Symington’s UK-wide distribution platform and retailer partnerships to consolidate its presence in the region, particularly for the distribution of pasta and bakery products.
Through expanding its product portfolio with the UK company’s brands, Newlat also says it will capitalise on the growing hot snacks market.
Symington’s operates three production plants and one distribution centre across northern England.
Upon completion of the transaction, Newlat will internalise the production of the Birkel Minuto instant noodles range that is sold in Germany and plans to expand the product’s reach. The Italian firm will also supply Symington’s with approximately 6,000 tons of pasta which is currently being provided from third parties.
The deal is in line with Newlat’s strategy plan to further strengthen its presence outside Italy and allow it to reach consolidate revenues in access of €630 million. The company was previously interested in purchasing UK bakery Hovis, but the bread maker was finally divested to private equity firm Endless.
In the last two years, Symington’s has generated recurring revenues of £105 million, and the food manufacturer plans to launch over 100 new products between 2021 and 2024.
As a result of the acquisition, Newlat estimates cost synergies amounting to €10 million to be realised by the end of 2022.
© FoodBev Media Ltd 2021
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