Singapore Food Industries said at the end of last week that it was buying the outstanding 70 per cent of S. Daniels it does not own already for £23.4 million (€37.2m) in cash, according to a report from FT.com.
Daniels, which counts the fast-growing and highly successful New Covent Garden Soup Company among its brands, has recommended the offer to its shareholders.
The offer from SFI, which owns Cuisine, a ready-meal maker based in Consett, County Durham, and food businesses in Singapore, China and Australia, represents a 100 per cent premium over Daniels' share price before the group announced it was in talks.
SFI, which is funding the deal from its own cash facilities and bank loans, said the deal would strengthen its presence in the UK chilled and convenience food sector. The company believes that the chilled convenience food sector will "continue to grow at a rate substantially above the rate of growth in the overall food sector."
The deal not only sees SFI gain control of one of the first fresh soup brands that has sparked a host of imitations like Soup Opera, but also Johnsons freshly squeezed juice business and All Fresh Foods - two of the UK's fastest growing brands.
In the year to 31 December 2001, S. Daniels had a turnover of £53.2m and pre-tax losses of £1.12m compared with profits of £4.06m in 2000. The group has suffered recently with the decline in air travel, which has hit its juice sales and All Fresh Foods, which provides prepared salads and sandwich fillings to airlines, airports and hotels. Net assets were £16.1 million.