The purchase of the Leeds-based ambient food manufacturer includes well-known snacking brands such as Mug Shot, Naked and Ragu. Symington’s also produces own-label products for top supermarkets.
Rumours surrounding the sale of Symington’s began circling in February this year, with a price tag of between £80m to £100m reportedly on the table. However, there were doubts that the ambient food producer would secure a deal at the higher end of the scale.
In a presentation on the deal, Newlat said Symington’s UK distribution platform was at operating at roughly 70% capacity and ‘could be used for the distribution of Newlat’s food pasta and bakery category’.
Newlat added: “Symington’s is purchasing circa £7m of pasta as raw materials. Newlat Food has c.40% of spare capacity and the industrial knowledge to cover all recipes and formats.”
The company claimed Symington’s existing trading relationship with Walmart in the US could be developed through the addition of Newlat products.
“The optimization of the capacity could leave one of the Symington’s production plants free to become a pure pasta production plant,” it added.
David Cox, Symington’s chief executive, said: “Newlat wants to invest in our business and our brands. It provides long-term security for our business with an international ambient and dairy food player operating in mutually beneficial categories and is an exciting time for us both.
“By bringing together both businesses we can combine our strengths, accelerate our growth and increase our global footprint. Symington’s provides a strong springboard for Newlat’s brands into the UK market and Newlat gives us further opportunities for us to grow our brands internationally where Newlat has operations – in Italy and Germany.”