3rd Nov 2023 10:13
(Alliance News) - Roebuck Food Group PLC on Friday said it has agreed to buy Moorhead & McGavin Ltd for GBP2.2 million.
Roebuck Food is a Newry, Northern Ireland-based protein and product sourcing company.
Moorhead & McGavin is a food and food ingredient distribution business based in Motherwell, North Lanarkshire. It specialises in supplying pulses, cereals, pasta and rice to the food service industry. In 2022, it reported revenue of GBP7.3 million and earnings before interest, tax, depreciation & amortisation of GBP377,000.
Roebuck said it will pay GBP2.2 million for Moorhead. This includes GBP2.1 million payable in cash and GBP150,000 through the issue of new shares.
Roebuck said it intends to raise GBP2.5 million through a placing of shares priced at 13.5 pence each.
The placing price represents a discount of approximately 10% to the closing price of 15p on Thursday.
The proceeds of the placing will be used to pay for the acquisition of Moorhead and for "general working capital requirements."
Commenting on the acquisition and the placing, Chair Ted O'Neill said: "This is an exciting new development for Roebuck, as it implements its strategy of focusing on growing and innovative businesses within the food and agribusiness sector."
The acquisition is subject to approval of Roebuck shareholders at an extraordinary general meeting, to be held on or before December 31.
By Sophie Rose, Alliance News senior reporter
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