CapVest's Valeo acquires Jacob Fruitfield

The acquisition of Jacob Fruitfield will be financed by a combination of cash, a vendor loan note and new equity.

The deal, subject to regulatory approval, is consistent with Valeo's strategy to grow its business in the Irish food sector.

Apart from CapVest, Valeo's other major shareholder is Origin Enterprises. Selling shareholders in Jacob Fruitfield have also reinvested in the deal.

CapVest teamed up with AIM-listed Origin Enterprises in September 2010 to create Valeo Foods in order to acquire Irish food company Batchelors.

Debt
Valeo received additional debt financing to support the transaction from Bank of Ireland Corporate Banking AIB Corporate Banking, HSBC Corporate Banking Ireland, Rabobank Ireland and Ulster Bank Corporate Banking.

Company
Jacob Fruitfield brings together Fruitfield Foods, which was acquired from Nestlé in 2002, and Irish Biscuits, which was purchased from Danone in 2004. The company's consumer brands include Scots Clan sweets and confectionery, Fruitfield jams and marmalades, Jacob's biscuits, Chef sauces, and Silvermints.

Jacob Fruitfield employs around 50 people directly. The company's turnover, according to its latest financial report, is approximately €80m.

Formed in 2010, Valeo comprises a portfolio of Irish consumer brands. The portfolio currently includes Batchelors, Odlums, Shamrock, Sqeez, Roma, Erin, Amigo, Lustre and Picnic. Valeo also provides tailored route-to-market services for a number of international consumer brands.

The combined business of Valeo and Jacob Fruitfield will have an annual turnover of approximately €300m and a combined workforce of nearly 500.

Advisers
Equity – NCB Corporate Finance (Financial due diligence); Arthur Cox (Legal).
Company – Stamford Partners (Financial due diligence); William Fry (Legal).

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• Topics
• Expansion
• UK / Ireland
• Consumer
• Acquisition finance
• Ireland