Huddled Group acquires Food Circle Supermarket to expand e-commerce portfolio
Huddled Group plc, a prominent player in the e-commerce sector, has announced its acquisition of Sheffield-based online retailer Food Circle Supermarket Ltd for a total consideration of up to £300,000. This acquisition encompasses the entire stock, intellectual property, and digital assets of Food Circle, including its website and social channels.
The acquisition terms stipulate an initial payment of £100,000 in cash and £50,000 in Huddled Group plc shares. An additional £50,000 in shares will be disbursed on the first anniversary of the acquisition, contingent upon specific conditions and warranty claims. Furthermore, an extra £100,000 in cash is payable contingent upon Food Circle achieving set targets in the first year post-acquisition.
This strategic acquisition is expected to significantly enhance Huddled Group’s portfolio by integrating Food Circle’s expertise in selling discounted foods for health and specialized diets. The transaction also involves the issuance of 2,096,436 new ordinary shares in Huddled Group plc, priced at 2.385 pence each, slated for trading admission on AIM around April 16, 2024.
Food Circle, established in 2018 by Paul Simpson and James Barthorpe, specializes in direct-to-consumer sales of discounted, health-oriented food products, and has established robust partnerships with notable brands like Huel and Grenade. The company reported an unaudited revenue of £1.4 million and a minor net loss for the year ended December 31, 2023. The integration into Huddled Group is anticipated to offer significant operational synergies, including enhanced distribution capabilities and expanded product offerings.
The acquisition aligns with Huddled Group’s existing operations, particularly with its Discount Dragon brand, by enhancing its market positioning in the online surplus food and drink sector. It is expected that the fulfillment of Food Circle’s orders will transition to Huddled Group’s Leigh warehouse in due course, optimizing logistics and customer service.
Martin Higginson, CEO of Huddled Group PLC, expressed enthusiasm about the acquisition: “We’re delighted to announce this exciting opportunity to further strengthen our position in the online surplus food and drink market, alongside our existing brand, Discount Dragon. Food Circle is positioned at the intersection of a number of market trends; the continued search for value among consumers, the demand for e-commerce and direct delivery services, and the growth in health and nutrition products to support active lifestyles.”
Founders Paul Simpson and James Barthorpe also shared their positive outlook: “We are delighted that Food Circle is joining the Huddled Group plc family. We believe that Huddled Group plc is the perfect partner to help us unlock the huge potential of Food Circle. The business is positioned in a rapidly growing market, and we are confident that this acquisition will enable us to build on the work we have done so far.”