Booker cashes in with £18.5m acquisitions
Food wholesaler Booker is cashing in on the post-recession boom as it announced that it had acquired food distributor Ritter-Courivaud and Classic Drinks. The Wellingborough-based company revealed its latest buyouts as it released its interim results. The company said that it hopes to open two more branches in India by spring 2011 following an increase in sales of 5.5 per cent to £1.7bn.
The company's results were for the 24 weeks to 10 September 2010.
Through its interim results statement to the London Stock Exchange, Booker announced that it had completed two acquisitions. Middlesex-based Ritter-Courivaud was bought for a cash consideration of £14.5m. The company has current annual sales of about £30m.
Drinks supplier Classic Drinks, headquartered in Merseyside, has also joined the company’s portfolio for £4m, funded from Booker's existing resources. The company operates from eight depots in the Midlands and the North of England and has current annual sales of approximately £30m.
The Booker group includes the Happy Shopper, Lichfield and Euro Shopper brands.
The company also said that profit after tax had increased by 22.7 per cent to £30.3m from the comparable 2009 period. Basic earnings per share had also increased by nearly a quarter 2.03 pence, up from 1.66 pence in the same period last year.
Booker said that its branch in India was “performing well”, and added that it hoped to expand by a further two sites in 2011.
Alongside its positive financial results, Booker announced that commercial director Bryan Drew would be leaving the company at the end of the financial year “in order to have more time to pursue his other entrepreneurial interests”.
The company also said that former head of food at Marks and Spencer, Guy Farrant would join the business with immediate effect, taking up the role of managing director.
Charles Wilson, chief executive of Booker, said: "Booker is helping more customers compete by improving our choice, prices and service. Our sales growth is good and our plans to broaden the business are progressing well. We are delighted to bring Ritter and Classic into the Booker group.
“Each company brings new expertise to Booker and will help the group offer an even better choice and service to caterers in the UK. I am also delighted that Guy Farrant has joined the business. He brings enormous experience in the food industry which will benefit all our customers."
