VMI bought as part of an £11m deal

SNACK and chilled drink vending machine operator SnackTime has bought Blackburn-based business VMI as part of an £11m deal.

SnackTime has bought the entire share capital of VMI’s parent company Vendia UK for £10.98m as it looks to achieve rapid growth.

Vendia UK’s core operation is a traditional vending business specialising in the sale of hot drinks which complements SnackTime’s confectionery and chilled drinks operations.

In addition to VMI, it trades under brands such as Simply Drinks in London, Integer in the Midlands and Drinkmaster – a national table top and in cup specialist company – based in Plymouth.

VMI was established over 30 years ago to provide food and drink vending equipment across all industry sectors to an extensive customer base including hospitals, schools and companies across England’s North West and North as well as South Wales.

For the year ended 31 December 2009, Vendia UK reported audited revenues of £19.7 million and adjusted EBITDA under IFRS of £2.1 million.

SnackTime will also assume term debt of approximately £2.4m with the Co-operative Bank as a result of the acquisition.

The enlarged group now has more than 450 employees, agents and franchisees and will be the UK’s fourth largest vending company by revenue.

Blair Jenkins, chief executive of SnackTime, said: “Vendia’s business is an ideal strategic fit with SnackTime and its exposure and expertise in the hot drinks market perfectly complements our existing snacks and chilled food operations.

“The combined group will have an extensive footprint throughout the UK and Ireland, providing excellent cross-selling opportunities and even greater awareness for our brand partners.

“This is a significant milestone in the company’s evolution and is a major step towards our goal of becoming Europe’s leading snack, chilled and hot beverage vending solution provider.”