Northern Foods buys ready meals manufacturer

YORKSHIRE food manufacturer Northern Foods has strengthened its
number one position in the ready meals market with the acquisition
of Ethnic Cuisine.

The Swansea-based manufacturer has been bought by Northern Foods,
which has its headquarters in Leeds, for an undisclosed sum as part
of its plans to boost manufacturing capacity.

Ethnic Cuisine, which supplies chilled ready meals and snacks to
Sainsbury and Brake Bros, specialises in oriental foods and in
March this year reported revenues of £24m. All 350 employees
will transfer to the employment of Northern Foods.

Under the terms of the agreement Meng Yip, Ethnic Cuisine's
company founder and managing director, will remain with the company
in the short term to ensure a smooth transition of the business.

Commenting on the acquisition Stefan Barden, chief executive of
Northern Foods, said:

“This acquisition gives us further competitive strength in the
ready meals market, and is in line with our previously stated
strategy of developing this growing market and expanding our
customer base.

“Meng, and his brother Steve,have built Ethnic Cuisine into a
profitable business, with a strong reputation for producing high
quality ready meals. We look forward to developing the business
going forward and welcome our new employees to Northern
Foods.”

Meng Yap said:

“I am delighted to be selling this business to the
market's leading ready meals

manufacturer.

“I am confident that Northern Foods will be able to grow the
business and enable Ethnic Cuisine to realise its full potential. I
would like to thank Sainsbury's for all their support and all
the loyal employees who have helped build up this successful
business. I wish them all success in the future.”

Earlier this month Northern foods reported that its half-yearly
profit before tax was up 37.7% at £20.1m.

The company has 19 manufacturing sites across the UK and Ireland
and produces food for well known brands such as Goodfella's
pizza, Grassington's Food Co and Dalepak.