UK ice cream company Hill Station has announced that it has entered into two conditional agreements to purchase the entire issued share capitals of Granelli McDermott and Loseley Dairy Ice Cream.
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The aggregate consideration for the acquisitions is approximately £2m (US$3.6m) in cash, together with the repayment of loans to certain of the vendors of approximately £400,000 and the assumption or repayment of approximately £3.2m of existing bank facilities. The acquisitions are conditional on, amongst other things, approval at an EGM of Hill Station, to be called following a placing to raise gross proceeds of up to £7.5m, which is in the course of being finalised.
Granelli manufactures a broad range of ice cream products under supermarket and other customer brands as well as under the Louis Granelli, Granelli and More from Granelli brands. Loseley manufactures a broad range of ice cream products under supermarket and other customer brands as well as under the Loseley, Yorkshire Dales and Thayer’s brands.
Hill Station manufactures and markets super-premium ice cream under the Hill Station brand. It produces a retail range of 11 flavours and a foodservice range of 13 flavours.
Hill Station’s strategy is to position itself as an efficient manufacturer of a broad range of ice cream products capable of responding to own-label customer demand across the product quality and price spectrum as well as in branded sales. The company said it believes that the acquisitions will deliver a number of key benefits including: the creation of a new, broadly-based, and commercially credible manufacturer in the UK ice cream sector; putting the enlarged group in a strong position to compete against other established manufacturers for both own-label business and branded sales; enhancing its competitive position with customers by extending the group’s operations through all segments of the ice cream market; and achieving significant operating efficiencies and overhead reductions .
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By GlobalDataHill Station will relocate its current operations to the new state-of-the-art production facilities at Loseley’s 80,000 sq ft site at Cwmbran, South Wales.
“These acquisitions will result in a major transformation of Hill Station from a niche manufacturer of branded products to a broadly-based player in the ice cream sector,” said Charles Hall, Hill Station’s group managing director.
