Associated British Foods Acquires Patak’s

31/05/07 Associated British Foods plc the international food, ingredients and retail group has reached agreement on the acquisition of the Patak’s business from the founding Pathak family. Completion is subject to a number of conditions, including regulatory clearances, which are likely to be satisfied by the end of August 2007. The business comprises the Patak’s brand and assets in all countries except India. The gross assets of the business being acquired as at 2 October 2005 were £40m.

Patak’s is a leading brand in Indian cuisine and is widely recognised for its authenticity. It was established in England in 1957 and has grown strongly in the UK and has also established a wide international presence. It manufactures, markets and distributes Indian cooking sauces, curry pastes, chutneys and other meal accompaniments from the Indian sub-continent. In the UK it supplies both retail and foodservice. Its major factory is in Leigh, Lancashire. Unaudited revenue for the year to 30 September 2006 was £66m.

The grocery businesses of ABF are international. In the UK this includes the retail pan-oriental brand, Blue Dragon, and Westmill Foods is the largest supplier to the ethnic wholesale trade with a stable of brands including Pride Oil, Tolly Boy rice, Rajah spices and Lucky Boat noodles. In the US, ACH is a major retail supplier of herbs and spices.

The combination of Patak’s with these existing businesses will create a leading position in the UK for the supply of world foods to both the retail and wholesale channels. These markets have grown strongly and this growth is expected to continue. ABF’s grocery business outside the UK will provide the capability and resource to drive the international growth of Patak’s.

Kirit Pathak will assume the role of chairman of the combined business of Patak’s and Blue Dragon and Meena Pathak will also become a director. They will provide invaluable support in achieving the further growth of these brands, ABF said in a statement.