Crawshaw Group plc Acquires Gabbotts Farm Limited
Crawshaw Group plc (the "Company") (AIM: CRAW), the fresh meat and food-to-go retailer, announces that it has acquired 100% of the share capital of Gabbotts Farm Limited for £3.9m utilising existing cash resources on a "debt free cash free" basis from Cribbin Family Butchers (Holdings) Ltd.
Gabbotts Farm Limited is the holding company for Gabbotts Farm (Retail) Limited which operates 11 retail butchers units, which includes a factory meat mart attached to a small distribution centre, in the North West of England. Their retail format is almost identical to that of the Company, selling quality fresh meats and food to go at value prices.
Gabbotts Farm (Retail) Limited generated a turnover of c. £10.8m and an EBITDA of £0.8m (before group management fees and one off costs) for the financial year ended 31st December, 2014. The acquisition will increase earnings immediately and provide the Company with access to customers in a completely new geographical region, as well as presenting the potential for operational synergies to further enhance profitability.
Chief Executive Officer, Noel Collett, comments:
"This acquisition provides a well established retail portfolio and factory operation in a new geographical region which is an integral part of our expansion strategy and the start of our exciting journey of achieving 200 stores. Furthermore, the operational synergies and the new supply chain network can rapidly enhance sales and profitability".