LONDON, UK: Roebuck Food Group plc (AIM: RFG), a company specializing in food and agribusiness growth and innovation, has announced a conditional agreement to acquire the entire issued share capital of Moorhead & McGavin Ltd, a food and food ingredient distribution business based in Motherwell, UK.

The acquisition, subject to a completion accounts adjustment mechanism, will amount to £2,225,000, with £2,075,000 payable in cash and £150,000 in new Ordinary Shares of Roebuck. The approval of Roebuck shareholders at an Extraordinary General Meeting (EGM) is required, scheduled to be held on or before December 1, 2023.

Moorhead & McGavin Ltd specializes in supplying pulses, cereals, pasta, and rice to the food service industry. In 2022, the company generated revenue of £7.26 million, had an EBITDA of £377,000, and possessed net assets worth £1.65 million. The current CEO, Marko Dafereras, has agreed to remain with the business for at least one year.

Roebuck Food Group also intends to raise gross proceeds of up to £2,500,000 through a Placing of new Ordinary Shares, subject to approval of the Acquisition and the passing of a resolution at the EGM. The Placing Price represents a discount of approximately 10% to the Closing Price of 15 pence per Ordinary Share on November 2, 2023.

The proceeds from the Placing will fund the acquisition of Moorhead & McGavin Ltd and cover general working capital requirements, with J&E Davy acting as the broker on the Placing.

The Placing will be conducted through an accelerated bookbuild process, with a further announcement on the closing of the Book Build and the number of Placing Shares to be issued expected to follow.

Chairman Ted O’Neill commented on the acquisition and the Placing, highlighting the development as an exciting step for Roebuck in line with its strategy of focusing on growth and innovation within the food and agribusiness sector.

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