AB Foods to boost agri-food unit with $60 million bolt-on
2023.06.06 02:57
© Reuters. FILE PHOTO: Customers walks with shopping bags, as retail store Primark in Birmingham, Britain reopens its doors, April 12, 2021. REUTERS/Carl Recine/File Photo
LONDON (Reuters) -Associated British Foods, the owner of Primark and major sugar, foods and ingredients businesses, said it would buy dairy technology company National Milk Records (ASE:) for 48 million pounds ($59.7 million) to boost its agri-food unit.
While it is best known for the value fashion retailer Primark which makes up almost half of its 17 billion pounds of revenue, AB Foods (LON:) is also one of the largest UK food producers and operates one of the country’s biggest animal feed businesses.
AB Foods said on Tuesday that NMR’s expertise in the dairy industry would help grow its agriculture business, adding data and technology platforms which help farmers become more profitable, initially in Britain.
“NMR is a high-quality business which is extremely complementary and additive to our dairy strategy and offering to the dairy industry,” said Jose Nobre, head of AB Foods’ AB Agri unit.
NMR’s board has recommended ABF’s 215 pence per share cash offer and AB Foods said in its statement that it had already received backing for the deal from investors holding about 69% of shares, close to the 75% threshold needed to approve the deal.
The deal is expected to be completed during the third quarter.
($1 = 0.8035 pounds)
