FDBusiness.com

Boparan Considering £300m Hostile Bid For Northern Foods

 Breaking News

Boparan Considering £300m Hostile Bid For Northern Foods

Boparan Considering £300m Hostile Bid For Northern Foods
December 22
15:28 2010

Food industry entrepreneur Ranjit Singh Boparan, who is head of the 2 Sisters Food Group, one of Europe’s leading poultry processors, is reported to be planning a £300m hostile bid for leading UK convenience food group Northern Foods, which could scupper its proposed merger with Greencore. Ranjit Singh Boparan has already assembled a 6.6% stake in Northern Foods.

The boards of Northern Foods and Greencore, also a leading player within the UK convenience food market, have already agreed terms on a recommended merger to create Essenta Foods, a £1.7b turnover business with strong positions in private label production along with significant band strength in biscuits and frozen pizzas. The merger is projected to yield cost synergies of £40m per annum within three years.

The board of Northern Foods has confirmed that is has received a letter from Boparan Holdings requesting access to certain information pursuant to Rule 20.2 of the City Code on Takeovers and Mergers. The letter contained no further details regarding Boparan’s intentions and Boparan has not made an offer proposal to the board, nor has it indicated the price at which any offer may be made.

Since the start of 2009, Ranjit Singh Boparan has acquired Storteboom Group, a Netherlands-based poultry processing business; Five Star Fish, a leading UK supplier of added-value, prepared fish to the food service sector; and famous seafood restaurant chain – Harry Ramsden’s. The prices of all three deals were undisclosed.

An acquisition of Northern Foods by Boparan Holdings is unlikely to yield the same level of synergies as the proposed merger with Greencore.

About Author

colin

colin

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

[eventlist]

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements