Hilton Food Group said it had agreed to acquire sous vide manufacturer HFR Food Solutions for around £3.3m.
The deal involved payment of a nominal £100 sum paid on completion, with the remainder payable three years after completion.
The deferred consideration would be calculated by subtracting the net debt of HFR from the enterprise value of HFR, with each metric calculated as at 28 February 2022.
It was estimated that the actual deferred amount payable would be be around £3.3m, but the final amount would depend on the performance of the HFR business.
Hilton said it would provide a secured loan of £2.8m to HFR on completion to finance the company.
'This acquisition represents an exciting opportunity for Hilton to broaden its offering in a fast-growing segment of the market and meet our customers' demands for Hilton to supply them with a range of innovative, high quality sous vide products,' chief executive Robert Watson said.
At 12:48pm: (LON:HFG) Hilton Food Group PLC share price was -10p at 924p