IFR Ifr Capital

RNS Number:4582K
IFR Capital PLC
21 December 2007


IFR Capital Plc (AIM: IFR)

21 December 2007

IFR enters into agreement to acquire the German business of Hamker, a German
food producer

IFR Capital Plc ("IFR" or the "Company"), an AIM-listed investment company
focused on consolidation opportunities in the European retail food sector, today
announces it has entered into an agreement to, subject to certain conditions
including all regulatory approvals, acquire 100% of the German operations of
Hamker Lebensmittel Beteiligungs GmbH & Co. KG ("Hamker") from the owning family
Hamker, for a cash consideration of Euro28.5 million.

Hamker comprises two production facilities in Rogatz and Bad Essen with 800
employees and would represent the third acquisition by IFR following its
purchases of Nordsee GmbH ("Nordsee") and Homann Chilled Food GmbH ("Homann"),
and a significant step towards the vision of creating a diversified European
food enterprise.

Hamker, since 1907, a widely-known food manufacturer located in Germany's
Bad Essen, is an important player in the market for mayonnaise, ketchup,
dressings, chilled salads and margarine, both in the food retailing and discount
distribution channels. Hamker had as at 30 June 2007 net assets of approximately
Euro24.7 million, and generated a turnover of approximately Euro161 million and an
EBITDA of Euro2.5 million for the year ended 30 June 2007. The acquisition of
Hamker highly complements the Homann business which mainly covers chilled salads
and convenience products, and IFR's management estimates the yearly synergy
potential on an EBITDA level to amount to more than Euro10 million. Synergies are
mainly expected to be derived from the areas of

  * complimentary strengths in product ranges and distribution channels;
  * cost savings in production, overhead and logistics; and
  * joint procurement through the increased sourcing volume.


To finance the acquisition, IFR Capital has decided to issue approximately Euro50
million of preferred equity that is subscribed in full by an investment
consortium.

An acquisition of Hamker would be closely aligned with IFR's long-term objective
of creating a leading vertically-integrated food business with a view to
acquiring potentially synergistic businesses to spur IFR's growth. The
integration of Homann, which began on completion of the transaction in July
2007, proceeds according to schedule. Nordsee has performed strongly in 2007 and
is looking to achieve an improved result compared to 2006. Including the Hamker
business, IFR would expect to generate a turnover of Euro800 million in 2008, and
the Board reiterates its target of a sales volume of at least Euro1.5 billion with
an EBITDA margin of approximately 10% by the end of 2009.

"Hamker would absolutely fit our strategy of consolidating the chilled food and
delicatessen business," said Heiner Kamps. "Homann and Hamker are very
complimentary businesses and would continue to pride themselves on being a
reliable and every-day supplier of high-quality food for everyone."


Enquiries:

Rob Bailhache & Nick Henderson, Financial Dynamics +44 (0) 207 269 7200
(Media Relations)

Chris Wells, Collins Stewart                       +44 (0) 207 523 8350

For further information on IFR Capital, please visit www.ifrcapital.eu.




                      This information is provided by RNS
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