Exponent acquires Gü

Harriet Matthews
17 May 2021

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Exponent Private Equity is to acquire UK-based chilled desserts producer GУМ from Noble Foods.

The sale is expected to complete in June, according to a statement.

In March 2021, Unquote sister publication Mergermarket reported that the sale process for Gü had begun, with the company marketed based on EBITDA of around £15m. The company was expected to be valued at up to 20x EBITDA, sources told Mergermarket. The report added that the process was expected to see interest from mid-market sponsors, as well as trade players including Nestlé, Müller and Yoplait.

Trade publication The Grocer reported that Noble Foods made an earlier sale attempt in 2018, with the report stating that the process had stalled due to the vendor's high valuation expectations. At the time, the company posted EBITDA of 7x and Noble Foods expected a valuation in th 14-15x EBITDA range, the report said.

Sky News reported earlier in May that Exponent was in exclusivity to acquire Gü, with the company valued at £150m.

Exponent said in a statement that it has followed the business for more than a decade and now intends to support the next phase of its growth, adding that it views the company as having significant potential for international expansion.

Exponent is currently deploying equity via Exponent Private Equity Partners IV. The GP invests in businesses with enterprise values of €150-500m.

Company
Founded in 2003, Gü produces chilled desserts including cheesecakes and mousses, as well as puddings that consumers can heat at home. It also has a "Free-from" range and a lower-calorie Lights range. Its products are available in the UK, France, Germany and the Netherlands.

The company employs fewer than 200 staff, according to LinkedIn. Gü is headquartered in London and has a production site in Bishops Stortford.

People
Gü – Pete Utting (managing director).
Noble Foods – Duncan Everett (CEO).
Exponent Private Equity – Simon Davidson (senior partner).

Advisers
Vendor – Spayne Lindsay (corporate finance); OC&C (management due diligence); KPMG (financial due diligence); DLA Piper (legal); MDW Capital (corporate finance); EMW Law (legal).
Equity – Allen & Overy (legal); EY (financial due diligence); KPMG (financial due diligence); Rabobank (corporate finance); Tomorrow Partners (debt advisory); Arthur J Gallagher & Co (insurance due diligence); Alix Partners (commercial due diligence).