Associated British Food Groups acquire ethnic flour company
Associated British Food Groups plc (ABF) have today announced the acquisition by Westmill Foods of Elephant Atta from Premier Foods.
Premier Foods sold its Elephant Atta ethnic flour business to Westmill Foods, owned by ABF, in a £34 million deal.
Established in 1988, Westmill Foods has grown to become a major flour, rice, spices, sauces, edible oils and noodles supplier to the UK and European ethnic wholesale market.
Elephant Atta was launched in the UK in 1962 in order to accommodate the growing South Asian community. The flour is used in the baking process of Asian flatbreads such as chapattis and naan breads.
At the end of last year, Elephant Atta had reported revenues of £17.8 and an EBITDA of £6.4 million. As of 31st December, the gross assets of the company were £3 million.
The acquisition includes the distribution, sales and marketing of ethnic flours under the Elephant Atta, Elephant Chakki Gold and Fassal brands. The money was paid in cash and the proceeds of the sale will be used to pay down debt.
Premier Foods’ chief executive officer Michael Clarke said: “We are continuing to deliver on our growth strategies, growing our Power Brands, divesting selected, non-core businesses and reducing costs on track with our plans. The Elephant Atta brands are great brands that I’m sure will benefit from being part of Westmill Foods.”
An co-packing agreement between Premier Foods and ABF means that Premier foods will continue to manufacture and package the Elephant Atta brands at its Southampton mill with brands being managed independently from Westmill Foods.
George Weston, chief executive of Associated British Foods, said: “Elephant Atta is the UK’s leading ethnic flour brand and will complement Westmill’s other leading ethnic brands including Tolly Boy rice, Rajah spices, Lucky Boat noodles and Patak’s pastes and sauces.”
This was posted in Bdaily's Members' News section by Francesca Dent .
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