Press release
Woodward acquires DBC to create £500 Million foodservice group
Woodward Foodservice, with distribution centres in Dalaston and Digbeth has acquired competitor DBC Foodservice to create a £500 million turnover foodservice group and consolidate its position as the UK's third largest supplier to the catering industry.
The acquisition is part of Woodward's ongoing expansion strategy following a management buyout led by chief executive Ed Hyslop in August 2005.
The deal is backed by existing investors Baugur and Talden. Debt finance is provided by Lloyds TSB Commercial Finance and Landsbanki Commercial Finance.
Woodward supplies a wide range of products, including fresh fish, fresh meat, frozen, chilled and ambient food to restaurants, pubs, hotels and schools across Britain. The company has an annual turnover of £210m and employs 1,100 people across 15 UK distribution sites.
DBC Foodservice, a wholly-owned subsidiary of the Danish Crown Group, has a network of 13 distribution warehouses throughout the UK, employs 800 people and has an annual turnover of £200m. After the sale Danish Crown will, via its UK subsidiary Tulip Ltd., continue to deliver a range of meat products to the combined businesses.
Woodward chief executive Ed Hyslop said: "DBC is a successful operator and a great fit for Woodward. Its distribution centres will strengthen our network, and give us an excellent customer base across a number of strategically important sectors.
"Combining the two businesses will give us a fabulous platform from which to grow further and offer additional value to our existing and potential customers."
The deal was put together by the Birmingham offices of Lloyds TSB Commercial Finance, Catalyst and Brown Jacobson.
Simon Woodcock at Lloyds TSB Commercial Finance in Birmingham said: "This is a highly strategic move for Woodward giving it the critical mass it requires to expand and take advantage within what is now a £9billion market. This is the second time in 12 months Lloyds TSB Commercial Finance has worked with Woodward, illustrating both our strength in the region and asset-backed lending's increasing role in the corporate finance deal mix."
Andy Currie from Catalyst Corporate Finance in Birmingham commented: "It's great to see this part of the original buy out strategy come to fruition. The combined group offers the full spectrum of foodservice capabilities on a national basis and, as such, is well positioned for future growth".
David Adams, Associate at Browne Jacobson: "Browne Jacobson acted for Lloyds TSB Commercial Finance on the management buy-out of Woodward Foodservice last year. We're delighted to have played a part in the next stage of Woodward Foodservice's growth strategy, again acting for Lloyds TSB Commercial Finance, and also for Landsbanki Commercial Finance, on the acquisition of DBC Foodservice."
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
