16 September 2009 - SnackTime plc, one of the UK's largest national operators of snack and chilled drink vending machines, is pleased to announce the acquisition of MBM Business Systems Limited, which owns the trademarks and assets to Snack in The Box and operates the SITB franchise network.
SITB is a significant provider of vended snacks and chilled drinks to the workplace and is SnackTime's main UK and Eire competitor in the snack and chilled drinks vending market. Following the acquisition, SnackTime will have a network of over 20,000 customer sites across the UK and Eire, which it believes will be the largest snack vending network in the UK and Eire.
The acquisition is expected to be earnings enhancing in its first year of ownership and in addition will
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provide significant economies of scale;
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improve and widen SnackTime's customer delivery options; and
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increase the Company's growth opportunities.
SITB was established 14 years ago and specialises in the provision of snack and chilled drinks to the workplace. The business services customers through franchisees who either operate vending machines or honesty boxes. SITB has in excess of 5,000 vending sites and 10,000 honesty boxes. SnackTime has acquired MBM for a cash consideration of £1.5 million and has agreed to retain key MBM directors with performance-related cash and share option bonuses. MBM reported revenue of £3.375 million and profit before tax of £301,000 for the year ended 31 March 2009 and had net assets of £108,000 as at 31 March 2009.
SnackTime is currently engaged in evaluating further acquisition opportunities in the UK and mainland Europe as it seeks to continue to grow both its operated and franchised snack and chilled drink vending machine network organically and by acquisition. In addition, the Company now offers hot drinks machines alongside its snack and chilled drinks vending machines.
Blair Jenkins, Chief Executive of SnackTime, commented
"This acquisition is another significant milestone for SnackTime in its growth plans. SnackTime is now a leading player in the snack and chilled drink vending sector in the UK and Eire and has the delivery platform to reach an even wider base of customers."