North Yorkshire food supplier secures future with sale

The future of a North Yorkshire-based meat and vegetable supplier, which had been struggling in the face of margin pressures, has been secured following its sale to a fellow Yorkshire-based business.

Established in 1986, Holmesterne Foods operates from two sites in Richmond, North Yorkshire, employing 140 staff. The firm provides meat and vegetable products to retailers, food service customers and food manufacturers.

In the company’s most recent accounts, for the year to June 30 2024, Holmesterne reported turnover of £20.6 million, up slightly from just under £20 million the previous year, while post-tax profits remained roughly level at approximately £2 million.

Despite the company’s strong track record in the food supply sector, however, it has faced significant margin pressure as a result of high input costs relating to packaging, ingredients and factory costs, which were exacerbated by employment tax increases.

Over recent months, the company had worked with advisers from Interpath to explore investment options that could support its operations. After reviewing the company’s options, Interpath ultimately secured a sale of the business to Leeds-based Troy Foods, a 240-strong supplier of salad and sauce products to customers from the retail and food manufacturing sectors.

David Kempley and Steve Clark, Chairman and Chief Financial Officer at Troy Foods, respectively, said that the acquisition represented “an exciting diversification” for the company.

They added that, having invested in the growth of the business, diversification is seen as “a development step, complementing our product range whilst offering synergies and enhancing stability.”

Kempley and Clark said that Troy Foods was committed to working with Holmesterne to help the company regain momentum and that they believed the deal would “unlock new opportunities for growth and innovation, while continuing to deliver the high standards our customers expect."

Keith Tindell, Managing Director at Holmesterne Foods, said: "The last year has brought its share of challenges, but throughout it all, our team has remained resilient and focused. Becoming part of a like-minded, family-owned business gives us the platform we need to stabilise and grow. We're confident that with Troy's support, we can build a stronger future for our people, our customers, and our suppliers."

The transaction was led by Tom Swiers, director and food and sector lead at Interpath, who said: "The food industry is a fundamental pillar of the Yorkshire economy and this deal brings together two notable firms in the region. The acquisition by Troy Foods creates a stable base for Holmesterne to steady its operations and rebuild after some challenging trading. For Troy, this supports its continued growth and diversification into new areas across an incredibly diverse customer base."


Read more about M&A trends in the UK's food and beverage industry

Find out about the steps owners of struggling businesses can take to secure a sale prior to insolvency

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