2007 press releases

Northern Foods plc (‘Northern Foods’), has acquired, for an undisclosed cash sum, the entire issued share capital of Ethnic Cuisine Limited (‘Ethnic Cuisine’) on 21 November 2007.  At 31st March 2007 Ethnic Cuisine had gross assets of £13.9m and revenue of £24.0m.

The acquisition of Ethnic Cuisine, which is a supplier of chilled ready meals and snacks to J Sainsbury plc and Brake Bros Ltd, allows Northern Foods to consolidate its number one position in the ready meals market and widen its existing ready meals customer base.  It also supports Northern Foods’ future growth plans, in line with its recently presented strategy, by acquiring additional ready meals manufacturing capacity from existing market providers.

Established in 1994, Ethnic Cuisine has a particular strength in oriental foods.  Based in Swansea, South Wales, the business has a workforce of around 350 employees who will transfer to Northern Foods.  Under the terms of the agreement, the company founder and Managing Director, Meng Yap, will remain with the business in the short term to ensure a smooth transition of the business.

Commenting, Stefan Barden, Chief Executive of Northern Foods, said:

"This acquisition gives us further competitive strength in the ready meals market, and is in line with our previously stated strategy of developing this growing market and expanding our customer base.  Meng, and his brother Steve, have built Ethnic Cuisine into a profitable business, with a strong reputation for producing high quality ready meals.  We look forward to developing the business going forward and welcome our new employees to Northern Foods."

Commenting, Meng Yap said:

"I am delighted to be selling this business to the market’s leading ready meals manufacturer.  I am confident that Northern Foods will be able to grow the business and enable Ethnic Cuisine to realise its full potential.  I would like to thank Sainsbury’s for all their support and all the loyal employees who have helped build up this successful business.  I wish them all success in the future."

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Notes to editors

• The chilled ready meal market is worth £1.5bn and is growing at around 6% per annum.  Following this acquisition, Northern Foods will have a 19.6% share of the market (source: TNS)
• Northern Foods has major shares in the British, Italian and Oriental ready meals market, and currently provides ready meals to Asda, M&S and Morrisons.
• The Ethnic Cuisine business will be managed by Robin Walker, managing director of Northern Foods’ Convenience Foods business unit.