Samworth Brothers has announced the potential sale of its renowned malt loaf brand, Soreen, as part of its strategy to concentrate on core product lines.
The food and drink manufacturing giant, Samworth Brothers, is reportedly working with financial adviser Spayne Lindsay to facilitate the sale of the Soreen brand. Sources suggest that the brand could fetch up to £75 million in the current market. This move aligns with Samworth Brothers’ strategic intent to streamline its product range and focus on its core offerings.
Interest in Soreen is reportedly high, with prominent rival food manufacturers such as Premier Foods, Valeo Foods, and the Finsbury Food Group showing keen interest in acquiring the brand. Although private equity firms might be potential buyers, industry insiders believe that a trade sale is more probable. Soreen has demonstrated robust performance with a 13% increase in sales in 2023, reaching £41 million, and its EBITDA rising from £4.7 million to £6 million.
In a separate development, Samworth Brothers has been fined £1.28 million following a tragic incident at its facility in Callington, Cornwall, where a worker was fatally injured by a lorry in the loading bay. The Health and Safety Executive (HSE) investigation concluded that inadequate risk assessment regarding the safety curtains contributed to the accident, resulting in the imposed fine. Samworth Brothers has yet to comment on the ruling.
The prospective sale of Soreen marks a pivotal shift in Samworth Brothers’ business focus, potentially altering the competitive landscape of the food manufacturing sector.
