8th Feb 2019 12:11
LONDON (Alliance News) - Food processing and packaging company Hilton Food Group PLC on Friday said that its unit, Hilton Food Ltd, agreed to acquire HFR Food Solutions Ltd.
HFR provides a wide range of meats, specialising in sous vide meat products. Sous vide is a method of cooking in which food is placed in a plastic pouch or a glass jar and cooked in a water bath for longer than normal cooking times.
"This acquisition enables Hilton to enter the fast-growing sous vide market and leverage its expertise in procurement and manufacturing of meat products in a new segment with major retailers and food service customers," the company said.
The price for the acquisition is structured so that GBP100 is paid on completion with the remainder payable within three years.
The deferred consideration will be calculated by subtracting the net debt of HFR from its enterprise value with each metric calculated at February 2022.
It is estimated that the actual deferred consideration payable will be GBP3.3 million.
Hilton Executive Chairman Robert Watson said: "This acquisition represents an exciting opportunity for Hilton to broaden its offering in a fast-growing segment of the market and meet our customers' demands for Hilton to supply them with a range of innovative, high quality sous vide products."
Hilton Food shares were trading down 1.3% at 922.00 pence each.
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