Foods group Greencore has brought its spending in the British consumer foods sector this year to €84 million, with the acquisition of The Roberts Group for £29.2 million sterling (€48.1 million).

Roberts is a fast-growing manufacturer of frozen savoury products such as Yorkshire pudding and frozen desserts such as sticky toffee pudding and has seen both its sales and operating profits increase by a factor of five in the past two years. Turnover has grown from £5.1 million to £25.9 million in the past two years, with operating profits up from £500,000 million to £2.7 million in the same period.

The £29.2 million price comprises £10.2 million in cash and loan notes and assumed debt of £8.2 million. The consideration also includes an earn-out payment of £10.75 million, which is conditional on the combined operating profits in the two years ending March 2001 and 2002 reaching £10.4 million sterling.

Greencore group development manager Mr Patrick Kennedy said that the earn-out target is challenging.

He added: "The Roberts management and ourselves are confident that the targets will be met and we will be delighted to pay the earn-outs if they are."

Roberts sells its frozen savoury and dessert products to most of the British multiples as well as to food service operators such as pubs, hotels and hospitals.

"The market for these products has grown substantially with the move to consumer foods, but Roberts has been also been able to increase its share of this rising market. "The operation is very tight and they have invested heavily," said Mr Kennedy. As well as its two existing facilities in Leeds and Huddersfield, Roberts is also currently developing a research and development centre at its Leeds site.

Greencore chief executive Mr David Dilger said: "The acquisition of Roberts is very much in line with our strategy to acquire businesses which, when combined with our existing operations and management, have the capability to develop further strong market positions in their sectors."