29th May 2007 07:03
Associated British Foods PLC29 May 2007 29 May 2007 Associated British Foods plc ABF acquires Patak's Associated British Foods plc ("ABF") the international food, ingredients andretail group today announced that it has reached agreement on the acquisition ofthe Patak's business from the founding Pathak family. Completion is subject toa number of conditions, including regulatory clearances, which are likely to besatisfied by the end of August 2007. The business comprises the Patak's brandand assets in all countries except India. The gross assets of the businessbeing acquired as at 2 October 2005 were £40m. Patak's is a leading brand in Indian cuisine and is widely recognised for itsauthenticity. It was established in England in 1957 and has grown strongly inthe UK and has also established a wide international presence. It manufactures,markets and distributes Indian cooking sauces, curry pastes, chutneys and othermeal accompaniments from the Indian sub-continent. In the UK it supplies bothretail and foodservice. Its major factory is in Leigh, Lancashire. Unauditedrevenue for the year to 30 September 2006 was £66m. The grocery businesses of ABF are international. In the UK this includes theretail pan-oriental brand, Blue Dragon, and Westmill Foods is the largestsupplier to the ethnic wholesale trade with a stable of brands including PrideOil, Tolly Boy rice, Rajah spices and Lucky Boat noodles. In the US, ACH is amajor retail supplier of herbs and spices. The combination of Patak's with these existing businesses will create a leadingposition in the UK for the supply of world foods to both the retail andwholesale channels. These markets have grown strongly and this growth isexpected to continue. ABF's grocery business outside the UK will provide thecapability and resource to drive the international growth of Patak's. Kirit Pathak will assume the role of chairman of the combined business ofPatak's and Blue Dragon and Meena Pathak will also become a director. They willprovide invaluable support in achieving the further growth of these brands. George Weston, chief executive of Associated British Foods, said, "We are privileged to be able to acquire as fine a business as Patak's. We lookforward to working with Kirit and Meena Pathak to build this business further". Kirit Pathak, chairman of Patak's, said, "With its experience in the world foods sector and international scale ofoperations, ABF is the ideal strategic partner for the Patak's brand. Moreover,this partnership will reinforce the leadership position of the Patak's brand inIndian food worldwide and significantly enhance the capacity of Patak's torealise its full global potential as the reference Indian food brand". For further information please contact: Associated British Foods: John Bason, Finance Director Geoff Lancaster, Head of External AffairsTel: 020 7638 9571 Mobile: 07860 562 659 Citigate Dewe Rogerson: Jonathan Clare/Chris Barrie/Fiona BradshawTel: 020 7638 9571 Notes to Editors 1. Associated British Foods is a diversified international food, ingredients and retail group with global sales of £6 billion and 75,000 employees. It is listed on the London Stock Exchange with a market capitalisation of £7.3 billion. It operates in 46 countries with significant businesses outside Europe in Southern Africa, the US, China and Australia. Its aim is to achieve strong, sustainable leadership positions in markets that offer potential for profitable growth. It strives to achieve this through a combination of organic growth, the acquisition of complementary businesses and achievement of high levels of operating efficiency. The group has established a track record of successful value adding acquisitions including AB Mauri, its leading international yeast and bakery ingredients business, Illovo Sugar, Littlewoods stores for Primark and the grocery brands Mazola and Ovaltine. 2. The grocery businesses of ABF had sales of £2.7 billion and operating profit of £185m in the year to 16 September 2006. The major brands are Twinings and Ovaltine in hot beverages, Mazola and Capullo in North America vegetable oils and Kingsmill and Tip Top in bread and baked goods. We are a leading US marketer of herbs and spices with the Spice Islands, Tone's and Durkee brands. In world foods, rice, noodles and sauces are marketed under the Blue Dragon brand to the UK retail trade and under a number of ethnic brands to the UK ethnic wholesale trade. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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