Sysco GB has purchased FairFax Meadow for £54 million, cash.
FairFax Meadow has been operating for more than 50 years and currently employs 360 people, with production and distribution facilities in across Derby, Enfield and Eastleigh. It was acquired by Hilton Foods in 2021.
Hilton Food’s says the sale to Sysco represents a continual review of the group’s activities and strategy, as it looks to align the business more closely ‘with its core strengths’.
“At Hilton Foods, our objective is clear, to build on the strengths that have long defined our business. By refining our portfolio and focusing resources where our global expertise and strong customer partnerships create the greatest opportunities, we are reinforcing the platform for sustained growth and delivering attractive long-term returns,” said Steve Murrells, CEO of Hilton Foods.
For Sysco GB, the acquisition of the catering butcher is part of a strategy to grow its ‘centre of plate’ proposition and mark itself out as the UK’s leading fresh meat supplier to the foodservice sector.
The purchase of the business will add to Sysco’s meat manufacturing capabilities and follows the company’s recent acquisition of Campbell’s Prime Meat, which has a foothold in Scotland and the north of England.
Paul Nieduszynski, CEO of Sysco GB, said the addition of FairFax is “a crucial next step” in its “plan to build leadership in the critical meat category”.
“Fairfax Meadow is a great business with skilled and experienced colleagues and a superb reputation for producing quality meat, combined with great levels of service,” he added.
“We believe this is a complementary fit for Sysco GB, strengthening our fresh meat proposition across the country and bringing even greater value to our customers.”
FairFax Meadow will continue to operate as a separate business with Penny Tomlinson remaining at the helm. While Sysco will benefit from its meat manufacturing expertise, FairFax will gain Sysco’s support and new routes to market through its operating companies.
“This acquisition acknowledges and further strengthens our position as one of the market leading meat suppliers to the foodservice industry,” commented Tomlinson, managing director at Fairfax Meadow.
“Sysco GB is a business with a deep-rooted understanding and unparalleled reach within the fast-moving foodservice sector. We are proud to bring our extensive meat industry knowledge and team expertise to complement Sysco GB’s existing strengths.
“I look forward to continuing to lead the business with my experienced and loyal team, ensuring a seamless transition for all customers and stakeholders.”
The disposal will result in Hilton Foods receiving gross cash proceeds of £54 million and is expected to be earnings dilutive.
The transaction also includes a three-year supply agreement with Hilton Food Solutions, ensuring continuity of supply.
