Samworth Brothers, a prominent food and drink manufacturer, has announced its intention to sell the malt loaf brand Soreen.
The decision to put Soreen up for sale marks a strategic move by Samworth Brothers to concentrate on its core product lines. The company is collaborating with financial adviser Spayne Lindsay in their efforts to divest the brand. According to industry sources, the potential value of Soreen could reach up to £75 million.
Premier Foods, Valeo Foods, and Finsbury Food Group are reported to be among the interested parties. Although private equity firms are also in the running, a sale to another trade buyer appears to be the more likely outcome. This follows Soreen’s impressive sales increase of 13% in 2023, which brought revenues to £41 million. Concurrently, EBITDA grew from £4.7 million to £6 million, indicating robust financial health.
In an unrelated development, Samworth Brothers has been fined £1.28 million following a tragic incident at one of its facilities in Callington, Cornwall. An employee was fatally injured after being struck by a lorry in the loading bay, an event that prompted a Health and Safety Executive investigation. The inquiry concluded that the company had failed to adequately assess the risks related to the safety curtains in the area. Consequently, Samworth Brothers was ordered to pay the fine. The company has been approached for comment regarding this incident.
Samworth Brothers’ decision to sell Soreen represents a significant shift in focus towards its primary products. Meanwhile, the company addresses safety concerns following a recent fine related to a workplace incident.
