Tomato specialist gains new shareholder

Wight Salads Group (WSG) yesterday acquired a new majority shareholder. RAR Group, a private Portuguese company, now controls 70 per cent of the WSG shareholding.

WSG operates a 15 share of total fresh tomatoes and a 55 per cent share of total fresh organic tomatoes sold in the British market.

Two of the original WSG shareholders (Alan Parker and Chris Hynes) are retiring, whilst Piers Verey and Hugh Verey will undertake new positions and continue to retain a shareholding in the company of 20 per cent. Top management holds a 10 per cent stake.

The enterprise value for transaction purposes, including debt, is approximately £20 million.

Jack O’Brien, ceo, will continue to lead a strong management team with an ambitious plan for growth and profit.

WSG plans to more than double production capacity over a period of five years. This includes the expansion of all existing nurseries, in the UK, Spain and Portugal with an expected investment of about £25m.

The combined expertise of both companies will support and further enhance WSG’s customer offer.

This signifies a new phase in the growth and development of Wight Salads Group. This acquisition forms part of the diversification strategy of the RAR Group, being part of a progress of active search for new opportunities of investment.

With a 2006 turnover of £54 million, WSG is present in the UK, Portugal and Spain and has 900 employees.