Global private investment firm Bain Capital Private Equity has announced it has signed a definitive agreement with CapVest to acquire Valeo Foods Group.
As a fast-growing consolidator in the food sector, the Pan European food business has expanded rapidly and grown annual net sales to approximately €1.1 billion for the 12 months through to March 2021, from less than €200 million in 2010, the company said.
Established in 2010, today Valeo serves 106 markets globally, produces more than 400,000 tonnes annually across its 24 manufacturing facilities, and employs more than 4,000 people.
'Innovation and Investment'
According to Bain Capital, Seamus Kearney, Group CEO of Valeo Foods will continue to lead the business with the existing management team.
"This transaction is a very positive reflection of the quality of our business and all of our people. It is also a testament to the passion and commitment CapVest, our management team and all of our colleagues have shown in continuously delivering best-in-class food products to our customers and consumers across our 106 markets," Kearney said.
"Bain Capital’s deep knowledge and heritage in innovation and investment in the food and grocery sectors means this is great news for our business and our people," he said.
Nigel Walder, managing director at Bain Capital Private Equity highlighted that Valeo Foods has been developed into a key player in the European food industry by a talented and ambitious team.
"We believe Valeo has further potential to grow significantly, both organically and through acquisitions, and look forward to partnering with Seamus and his team to accelerate that growth trajectory and further consolidate the Company’s position as a leading international food business,” he added.
Bain Capital Private Equity said it received financial advice from Credit Suisse and Houlihan Lokey, legal advice from Weil Gotshal & Manges, financial due diligence, tax and structuring services from PWC, commercial and strategy due diligence services from OC&C, and operations and IT due diligence services from Alix Partners.
CapVest and Valeo Foods management received financial advice from Goldman Sachs, legal advice from Willkie Farr & Gallagher, financial due diligence services from KPMG, commercial due diligence services from EY-Parthenon, and tax due diligence and structuring services from PWC, it added.
“The sale of Valeo Foods represents the culmination of our strategy to build a major international food business through a combination of strategic investment, innovation and complementary acquisitions of businesses and brands in categories with stable demand characteristics, where we have applied our team’s deep experience to drive sustainable growth," said Jason Rodrigues, Partner at CapVest.
"It has been a great partnership with an exceptional leadership team led by Seamus Kearney. Together they have created a high-performing and growing leader in ambient foods," he added.
Bain Capital Private Equity noted that the transaction remains subject to approvals by competent regulatory authorities.