Associated British Foods (ABF) has strategically increased its holding in the UK-based ready-meals company, Cook.
Recently, Cook confirmed that ABF initially took a minority stake in the company in 2020. Now, ABF has raised its shareholding while still remaining a minority investor.
ABF, which is actively expanding in the UK bakery sector by acquiring Hovis, acknowledged this transaction in a brief announcement . However, they did not disclose the size of the investment.
A filing with Companies House in London revealed that ABF’s stake exceeds 25% but remains below 50%.
The Hovis acquisition occurred through ABF’s Allied Bakeries division, which owns the Kingsmill and Sunblest bread brands.
Sarah Arrowsmith, CEO of Allied Milling & Baking and a board director at Cook, stated: “Cook is a very impressive business, and it’s been a pleasure to work with the team since our initial investment in 2020. I’m delighted that we’re strengthening our relationship with them, and I look forward to their continued success.”
Founded in 1997 by Edward Perry and Dale Penfold, Cook is based in Sittingbourne, Kent. The company offers a variety of frozen ready meals and desserts produced in its three kitchens.
Cook caters to independent retailers, operates an online store, and provides delivery services, with over 100 retail locations. Notably, their products are not available in supermarkets. The diverse menu includes Indian, Thai, and Mediterranean options, as well as free-from, vegan, and vegetarian choices.
For the fiscal year ending 31 March 2024, Cook reported a turnover of £119.7m ($160.3m), reflecting a 13.2% increase from the preceding year. However, their accounts filed with Companies House indicated a 15.5% decline in operating profit to £3.8m, while net profit fell by 47% to £1.9m.
In the statement confirming the ABF transaction, Cook expressed, “Since inception, Cook has always been controlled by the Perry family, alongside a small group of co-founders and aligned investors who share our values and mission to use business as a force for good. We were delighted when ABF joined that group in 2020. Since then, they have consistently supported the company’s mission and the Perry family’s long-term control. We are therefore pleased that they have further strengthened their minority stake.”