Gressingham Group said the deal, advised by financial consultancy MHA, complimented its growing offering in the UK food sector.
Central Food founder Gordon and Alison Lauder will remain involved in the business as existing staff step into new management to maintain consistency during the transition.
Commenting on the sale, Gordon and Alison Lauder said: “We believed it would be a challenging brief to identify a partner which would complement Central Foods’ business, safeguard our culture, and offer security and progression opportunities for our staff.
‘Significant milestone’
“We placed our trust in the MHA team who consistently provided incisive commercial advice and hands-on support with detailed aspects of the negotiation. The MHA team’s proactive communication and collaborative approach was fundamental to ensuring we reached this significant milestone.”
Central Foods has revenues of more than £50m, supplying branded and own-label frozen food to the UK hospitality industry since it was founded in 1996. Its customers include Bidfood, Brakes, Whitbread and Greene King.
William Buchanan, Gressingham Group director, added: “We are excited to bring Central Foods into Gressingham Group.
“The business opens up a new market category for us and its reputation for excellent products and service complements our existing presence in the foodservice sector. We look forward to continuing to make frozen food wholesalers’ lives easier.”
Wholesale specialists
The Suffolk-headquartered national food producer and wholesaler owns the retail brand Gressingham duck, as well as wholesale foodservice specialists Reids of Norwich, JF Edwards and Peter Thomson Group.
James Lawson, partner at MHA Corporate Finance, and MHA’s lead on the transaction, said: “Our process garnered interest from a number of potential strategic acquirers on an international basis, however Gressingham Group’s complementary UK market reputation and similar culture set it apart.
“It’s heartening to know we have helped deliver a transaction which enables the founders to achieve their personal objectives and we are certain this new partnership will see Central Foods and Gressingham Group continue to go from strength to strength.”
Meanwhile, Davidson Kempner Capital Management LP and Afendis have completed the acquisition of European ice cream producer YSCO for an undisclosed sum.
