Samworth Brothers is planning to sell the Soreen brand to focus on core offerings, garnering attention from major competitors.
- The sale process is underway with the help of financial adviser Spayne Lindsay, aiming to fetch up to £75 million for Soreen.
- Potential buyers include prominent food manufacturers like Premier Foods, Valeo Foods, and the Finsbury Food Group, though private equity interest remains low.
- Soreen has demonstrated impressive financial growth, boasting a 13% sales increase in 2023, alongside a notable rise in EBITDA.
- Separately, Samworth Brothers faces a £1.28m fine after a worker’s tragic accident, highlighting safety concerns at their facilities.
Samworth Brothers is looking to streamline its product focus by putting Soreen, a well-known malt loaf brand, up for sale. The company intends to concentrate on its core products and has enlisted financial adviser Spayne Lindsay to facilitate the sale. Industry speculation suggests that the brand could attract significant interest and may be valued at up to £75 million.
Interest in acquiring Soreen is reportedly high among rival food manufacturers such as Premier Foods, Valeo Foods, and the Finsbury Food Group. While a purchase by private equity firms is possible, industry insiders believe a trade buyer is more likely to secure the brand.
The financial performance of Soreen has been robust, with sales climbing by 13% in 2023 to reach £41 million. Additionally, earnings before interest, taxes, depreciation, and amortization (EBITDA) have increased from £4.7 million to £6 million, underscoring the brand’s profitability.
Meanwhile, a tragic incident at a Samworth Brothers facility has resulted in the company being fined £1.28 million. An employee was fatally injured after being hit by a lorry in the loading area at the Callington site. The Health and Safety Executive found that inadequate risk assessment of the safety curtains contributed to the accident, leading to the fine.
This development poses significant implications for Samworth Brothers’ operational policies, as safety protocols come under scrutiny in the wake of the incident.
Samworth Brothers’ strategic decision to sell Soreen reflects its dedication to a concentrated business approach amid challenges.
