PE-backed Valeo Foods buys Schluckwerder

Valeo Foods has acquired Schluckwerder, a German specialist producer of confectionery products from Novum Capital.

Valeo Foods has acquired Schluckwerder, a German specialist producer of confectionery products from Novum Capital. No financial terms were disclosed. Valeo Foods is a portfolio company of Capvest.

PRESS RELEASE

Dublin, Ireland and Adendorf, Germany, 12 January 2021: Valeo Foods Group (“Valeo Foods”, “the Group”) is pleased to announce that it has acquired Schluckwerder Holding GmbH (“Schluckwerder”), the leading specialist producer of confectionery products popular throughout Germany and internationally, from German mid-market private equity firm Novum Capital. This acquisition is subject to regulatory approvals.

Following this latest transaction, Valeo Foods’ annualised revenues will increase to approximately €1.2 billion, further consolidating the Group’s position as a major international food business across its three business units in the UK, Continental Europe and Ireland.

Following the purchase of Schluckwerder, revenues at Valeo Foods’ European business unit will increase to approximately €283 million. Its UK business unit has revenues of over €583 million with a further €319 million generated in Ireland.

Established in Ireland in 2010 as a portfolio business of CapVest Partners LLP, Valeo Foods has expanded significantly in recent years through acquisition-led growth and is the producer and distributor of leading ambient food brands including Kettle crisps, Rowse honey and Jacob’s biscuits.

Schluckwerder, founded in 1956, is the leading German producer of specialist high quality confectionery, including the 175-year-old ‘Lübecker marzipan’ brands, Erasmi and Carstens. These brands, which are produced using higher quality standards than other marzipan-based products, have been distinguished by EU protected geographic designation status since 1996.

Schluckwerder also produces nougat, chocolate rings, fondant, crocant and praline treats popular with consumers across Germany. Additionally, Schluckwerder operates a successful private label business and counts leading German and international retailers among its customers. Over 25% of Schluckwerder’s products are sold outside Germany.

Schluckwerder operates three modern production facilities in Lübeck and Adendorf and has 480 employees, bringing Valeo Foods’ total workforce to approximately 4,500.

Welcoming the transaction, Seamus Kearney, Group CEO, Valeo Foods, said: “Schluckwerder is a great business that is supported by an extensive team of excellent people and it significantly strengthens our presence in Continental Europe. Its purchase represents the continued realisation of our strategy of building a major international food business where we see further attractive opportunities for expansion. Schluckwerder is our first German acquisition and we expect to further grow our European business unit alongside our existing significant platforms in the UK and Ireland. Valeo Foods will continue to focus on targets in categories with stable demand characteristics where we can apply our team’s deep experience and expertise to drive sustainable growth.”

In December 2020, Valeo Foods completed the acquisition of It’s All Good, the UK’s leading tortilla chip manufacturer with the premium tortilla brand, Manomasa. It’s All Good joins Kettle Foods, Tangerine Confectionery and Big Bear Confectionery as part of Valeo Foods’ expanding Snacking division.
Valeo Foods’ growing product range, sold in over 106 countries around the world, include numerous iconic leading brands across categories such as snacking & sweet treats, confectionery, health & wellness, baking & meal ingredients and foodservice.

About Valeo Foods
Valeo Foods is a fast-growing global ambient food business with significant operations in the UK, Ireland and Europe. With annual sales of approximately €1.2 billion, the Group employs approximately 4,500 people across 20 manufacturing sites. Valeo Foods owns over 80 food brands many of which are category leaders including Rowse honey, Kettle hand cooked crisps, Jacob’s biscuits, Matthew Walker puddings, Batchelors peas and beans, Kelkin gluten free, Odlums flour and Roma pasta. The Group is a leader in snacking & sweet treats, confectionery, health & wellness, baking & meal ingredients and food service and its products are sold in over 106 countries throughout the world.
Valeo Foods is led by Group CEO, Seamus Kearney, and an experienced leadership team with significant experience and expertise in global food markets.