Valeo to acquire Jacob Fruitfield

Valeo Foods is to acquire the Jacob Fruitfield group for an undisclosed sum.

The merged businesses will have a combined turnover of approximately €300 million and a combined workforce of nearly 500.

The deal is subject to regulatory approval.

Valeo owns a number of top Irish brands including Batchelors, Odlums, Shamrock, Sqeez, Roman, Erin, Lustre, Amigo and Picnic.

It was put together by London-based private equity company CapVest in September 2010 in a deal worth between €140 million to €150 million.

Jacob Fruitfield brands include Jacob's biscuits, Fruitfield jams and marmalades and Scots Clan sweets and confectionery.

The acquisition of Jacob Fruitfield will be financed by a combination of cash, vendor loan note and new equity. Apart from CapVest, significant shareholders in the enlarged Valeo include Origin Enterprises and Jacob Fruitfield selling shareholders who are reinvesting in the enlarged business.

Following completion of the deal, CapVest co-founder Seamus Fitzpatrick will continue as chairman of Valeo while David Andrews and Michael Carey will join the board of Valeo as non-executive directors.

"Given the very tough trading environment, growing the business to allow investment behind our brands makes strong commercial sense. Our acquisition of Jacob Fruitfield is a significant step in what is likely to be an ongoing process of further consolidation in the Irish food sector. The enlarged Valeo that will emerge from this deal will be a more diversified and resilient Irish food company, well positioned for further growth," said Mr Fitzpatrick.

NCB Corporate Finance and Arthur Cox advised Valeo.

Bank of Ireland Corporate Banking acted as mandated lead arranger, facility agent and security trustee; with AIB Corporate Banking, HSBC Corporate Banking Ireland, Rabobank Ireland and Ulster Bank Corporate Banking acting as mandated lead arrangers in providing financing for the transaction.

Stamford Partners and William Fry advised Jacob Fruitfield.