Macclesfield franchise group announces takeover of commercial kitchen maintenance brand

Macclesfield based Franchise Brands has agreed the takeover of Warwickshire-based Filta, which provides fryer cleaning and grease management services to commercial kitchens.

The Macclesfield group, which owns franchises including Metro Rod, Willow Pumps, Ovenclean and Barking Mad, has purchased Filta for £49.8 million. The enlarged group is now valued at over £191 million following the takeover.

The boards of both companies have recommended the deal, citing the potential benefits for all stakeholders of the two businesses.

Stephen Hemsley, executive chairman of Franchise Brands, said:

“As we operate in similar markets to Filta, we know the business well, so we are delighted that Filta will be joining Franchise Brands.

“Bringing the businesses together will enable us to offer a broader range of complementary services to our combined customer base, providing competitive advantages in our ambition to offer a ‘Water In, Waste Out’ service to commercial customers and significant opportunities for future growth.”

Commenting on the offer, Jason Sayers, Chief Executive Officer of Filta, said:

“Filta delivered a strong performance in 2021 as the restaurant and hospitality market recovered from the impact of Covid-19. Despite some ongoing Covid challenges, new contracts were won, and we bounced back to deliver a record second half, which is testament to the resilience of our business model and the exemplary efforts of the entire team. 

“Franchise Brands offers an ideal home for our customers, business, talented staff and franchisees. Our Board believes there are greater benefits to be had from the more diversified range of services the larger group will offer, as well as a broader customer base and greater shared resources to support future growth.  The share structure of the Offer will also allow Filta’s shareholders, alongside our broader stakeholders, to benefit from the significant synergy potential the combination represents.”

“We look forward to bringing together our market leading businesses to deliver one-stop solutions to our customers and grow our franchise business as part of a larger, more diversified and well capitalised group.”

Filta’s Chief Executive, Jason Sayers, will join the Franchise Brands board as MD of Filta, while Brian Hogan will become group Chief Financial Officer as part of the deal.

The latest takeover for the Macclesfield franchise group follows its acquisition of franchise management software provider, Azura Group, in Autumn 2021.