SnackTime has agreed to acquire Vendia UK for up to £10.9 million.
Vending machine operator SnackTime has agreed to acquire Vendia UK for up to £10.9 million.
As a result of the acquisition of Vendia, SnackTime will assume debt of approximately £2.4 million with the Co-Operative Bank. SnackTime expects the acquisition to be earnings enhancing in the year ending March 2012.
Vendia supplies and operates vending machines, specialising in hot beverage machines. The company trades under brands including Simply Drinks and Drinkmaster. In 2009 Vendia reported net profits of £2.1 million on a turnover of £19.7 million.
Blair Jenkins, chief executive of SnackTime, comments: ‘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.’
AIM-listed SnackTime operates snack and chilled drink vending machines across the UK. In the year to March 2010 the company reported a pre-tax profit of £1.2 million on sales of £11.5 million. Following the deal SnackTime will have around 450 employees, agents and franchisees.
Under the terms of the deal Vendia’s non-executive director Michiel Slinkert will join the board of SnackTime as a non-executive Director.