Exponent scoops 14.5x for Quorn exit

The company was exited for an enterprise value of £550m.

Exponent states that it bought Quorn as an undermanaged business. The GP therefore brought in a new chairman and heavily invested in advertising, marketing and product development. It also accelerated the US expansion, striking a deal with Walmart. Quorn now operates in 15 countries around the world.

The sale process was straight forward. Exponent says it had interest from both corporate and private equity buyers. With the due diligence prepared, the GP was about to start the auction process, when Monde Nissin's offer was put on the table, a Philippines-based consumer goods company with a focus on businesses that are branded as healthy and sustainable.

The eventual buyer offered a good price and the right outlook for the business, with the plan to expand it to the Asian and Australian markets. After Monde Nissin's offer, the sale process took about four to six weeks. 

Previous funding
Exponent and ICG acquired the meat-free business of Premier Foods for an aggregate consideration of £205m in February 2011. The division, then called Marlow Foods, manufactures and sells products under the Quorn and Cauldron brands. The deal represented an entry multiple of 10.6x EBITDA. HSBC and Haymarket Financial supported the transaction with a debt package. ICG provided mezzanine financing for the deal.

Exponent stated that under its ownership, Quorn invested £30m in its Teesside site.

Company
Quorn operates in the meat-alternative food segment, selling chilled and frozen products. The company is headquartered in Stokesley and has three manufacturing sites in the UK with 620 employees. Sales totalled £150.3m in 2014.

People
Chris Graham is a partner at Exponent. Kevin Brennan is the CEO of Quorn. Henry Soesanto is the CEO of Monde Nissin.

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• UK / Ireland
• Consumer
• Exits
• Trade sale
• Exponent Private Equity