Acquisition

RNS Number : 3962L

Volvere PLC

29 July 2011

 



Volvere plc

29 July 2011

Acquisition

Volvere plc ("Volvere" or "the Company"), the growth and turnaround investment company, is pleased to announce an investment (the "Transaction") in Shire Foods Limited ("Shire").  Following the investment, Volvere is expected to own approximately 54% of Shire.

Shire's principal activity is the manufacture of frozen pies, pasties and sausage rolls.  

The business employs approximately 100 people in its factory in Leamington Spa and has been trading for over 40 years.  Shire's customers include major retailers, food service companies and independent wholesalers.

Consideration and Deal Structure

Volvere is subscribing £0.5 million for new ordinary shares in Shire, which will be met from existing cash resources.  Following the Transaction and the capitalisation of certain management loans, Volvere's equity ownership will be approximately 54% with the balance being held by management and their family.  In addition, Volvere will provide working capital facilities to assist the business in its future development, which is currently expected to be up to a further £0.5 million.

In Shire's audited accounts for the year ended 31 May 2010 the revenues and loss before tax were £8.5 million and £0.2 million respectively and net assets were £3.6 million.  For the year ended 31 May 2011 the unaudited revenues and loss before tax were £7.9 million and £0.3 million respectively with net assets of £3.3m.  Whilst the  Board believes the terms of the investment to be attractive, it expects that there will be reductions made to the carrying value of net assets acquired following determination of their fair values.

Commenting on the Transaction, Jonathan Lander said "I am delighted to be making this investment in Shire, which has a long history and a well-established brand in the sector.  We are looking forward to working with Shire's management and staff in putting the business on a firm footing for prosperity and growth."

For further information:

Volvere plc

Jonathan Lander, Chief Executive

+ 44 (0) 20 7634 9707

Arbuthnot Securities Limited

Nick Tulloch, Director

+ 44 (0) 20 7012 2158

 

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