Franchise Brands agrees £49.8m takeover of Filta Group
Multi-brand franchise business, Franchise Brands, has agreed a takeover of Warwickshire-based commercial kitchen services provider Filta in an all-share offer valued at £49.8m.
Macclesfield-headquartered Franchise Brands has agreed to pay 1.157 new share in exchange for each Filta share.
The enlarged group will have a combined market capitalisation of approximately £191.2m.
The boards of the two companies have recommended the deal.
Stephen Hemsley, Executive Chairman of Franchise Brands, said: “Bringing the businesses together will enable us to offer a broader range of complementary services to our combined customer base, providing competitive advantages in our ambition to offer a “Water In, Waste Out” service to commercial customers and significant opportunities for future growth.
“With the benefit of greater scale, we will be able to leverage the combined group’s expertise and shared services, including our scaleable technology, to drive future growth in revenue and profits, including by growing and developing Filta’s UK and European franchise business.
“The Enlarged Group will also be well positioned to expand in North America, given Filta’s well-established and successful franchise business in the region.”
Jason Sayers, CEO of Filta, said: “Filta delivered a strong performance in 2021 as the restaurant and hospitality market recovered from the impact of Covid-19.
“Despite some ongoing Covid challenges, new contracts were won, and we bounced back to deliver a record second half, which is testament to the resilience of our business model and the exemplary efforts of the entire team.
“Franchise Brands offers an ideal home for our customers, business, talented staff and franchisees.
“Our Board believes there are greater benefits to be had from the more diversified range of services the larger group will offer, as well as a broader customer base and greater shared resources to support future growth.”
Filta’s chief executive Jason Sayers will join the Franchise Brands board as managing director of Filta and Brian Hogan will become group chief financial officer.
