CapVest has agreed to sell Valeo Foods to Bain Capital for an undisclosed price. With a portfolio of food brands that now includes Jacobs, Rowse, Kettle, Odlums, Barratt, and Balconi, among others, Valeo under CapVest has grown from €200 million in sales over €1.1 billion in net sales in 106 markets worldwide. Credit Suisse and Houlihan Lokey advised Bain, while Goldman Sachs advised CapVest and management.
Funds managed by CapVest Partners LLP (“CapVest”), an international private equity firm, have agreed on the sale of Valeo Foods (“Valeo or “the Group”) to Bain Capital Private Equity (“Bain Capital”), a leading global private investment firm, for an undisclosed consideration.
CapVest established Valeo Foods in 2010 when it acquired Irish ambient food businesses Batchelors and Origin Foods, as part of a wider vision and ambition to create a leading pan-European ambient food group with a diversified portfolio of leading consumer food brands. CapVest and Management have since grown Valeo Foods from an Irish-only business with less than €200 million in sales to a leading global ambient food group with over €1.1 billion in net sales in 106 markets around the world. This has included the acquisition and integration of 16 businesses in the UK, Ireland and continental Europe and its portfolio of brands currently includes Jacobs, Rowse, Kettle, Odlums, Barratt, and Balconi, among others, across various categories and channels. The Group is also a significant producer of private label products, with long-standing relationships with all major retailers.
Valeo Foods employs over 4,000 employees across Ireland, UK, Italy, the Czech Republic, the Netherlands, and Germany, generating a total output of nearly 400,000 tonnes per year across 24 facilities. The Group is focussed on providing sustainable, high-quality food products while continuing to grow alongside its valued customer base.
Jason Rodrigues, Partner at CapVest, said: “The sale of Valeo Foods represents the culmination of our strategy to build a major international food business through a combination of strategic investment, innovation and complementary acquisitions of businesses and brands in categories with stable demand characteristics, where we have applied our team’s deep experience to drive sustainable growth. It has been a great partnership with an exceptional leadership team led by Seamus Kearney. Together we have created a high-performing and growing leader in ambient foods We look forward to seeing Valeo Foods continue to flourish under Bain Capital’s ownership.”
Seamus Kearney, Group CEO of Valeo Foods, who will continue leading the business with the existing management team, said: “This transaction is a very positive reflection of the quality of our business and all of our people. It is also testament to the passion and commitment CapVest, our management team and all of our colleagues have shown in continuously delivering best-in-class food products to our customers and consumers across our 106 markets. Bain Capital’s deep knowledge and heritage in innovation and investment in the food and grocery sectors means this is great news for our business and our people. We are very excited to work alongside the Bain Capital team as we continue our journey and pursue our ambitious plans for further growth in the future.”
Nigel Walder, a Managing Director at Bain Capital Private Equity, said: “Valeo Foods has been developed into a key player in the European food industry by a talented and ambitious team. We believe Valeo has further potential to grow significantly, both organically and through acquisitions, and look forward to partnering with Seamus and his team to accelerate that growth trajectory and further consolidate the Company’s position as a leading international food business.”
CapVest and Management received financial advice from Goldman Sachs, legal advice from Willkie Farr & Gallagher, financial due diligence services from KPMG, commercial due diligence services from EY-Parthenon, and tax due diligence and structuring services from PWC.
Bain Capital Private Equity received financial advice from Credit Suisse and Houlihan Lokey, legal advice from Weil Gotshal & Manges, financial due diligence, tax and structuring services from PWC, commercial and strategy due diligence services from OC&C, and operations and IT due diligence services from Alix Partners.
The transaction is subject to approval from regulatory authorities.