RHM, one of the largest food retailers in the UK and Ireland has announced its sale of Pasta Foods LTD to a management buy-out team for an undisclosed fee. In a separate deal, it has also sold Three Cooks limited to Cooks limited, again for an undisclosed sum.
"Following a review of our activities, we identified Pasta Foods and Three Cooks as non-core activities. We are pleased that both companies will be taken forward by management teams able to focus independently on their future development", said Ian McMahon, group chief executive.
Peter Barry, managing director of Pasta Foods commented: "Over the last few years Pasta Foods has been a non-core business within RHM, this change of ownership enables clear management focus on the business to meet our customers requirements and further improve our service to them. This will drive business growth through new products, entry into new markets and investment supported by an experienced, committed and involved workforce.
"We operate primarily in two growth markets for food, snacks and prepared meals, hence we have a significant opportunity through high levels of all round service to our customers supported by innovative products and ideas to further improve our business performance. We have a sound cost base and modern production facilities which give me confidence we can secure real growth in the Company."
The financial support for the acquisition has been provided by Lloyds TSB commercial finance.
Based in Great Yarmouth, Norfolk, Pasta Foods is the largest manufacturer of pasta as an ingredient for the food processing industry in the UK. Pasta Foods owns Marshalls, the leading retail brand of pasta in Scotland. The company employs 130 people and runs one of only two semolina mills in the country using a combination of locally grown and imported drum wheat. Pasta Foods are also the leading manufacturers of snack pellet ingredients, trading globally in over 30 countries.