Valeo Acquires German Confectionery Group Schluckwerder
Valeo Foods Group has announced that it has acquired Schluckwerder Holding GmbH, a specialist producer of confectionery products popular throughout Germany and internationally, from German mid-market private equity firm Novum Capital.
Following this latest transaction, Valeo Foods said that its annualised revenues will increase to approximately €1.2 billion.
The Jacob's biscuits owner said that following the purchase of Schluckwerder, revenues at Valeo Foods’ European business unit will increase to approximately €283 million.
Its UK business unit has revenues of over €583 million with a further €319 million generated in Ireland, it added.
Established in Ireland in 2010 as a portfolio business of CapVest Partners LLP, Valeo Foods has expanded significantly in recent years through acquisition-led growth and is the producer and distributor of ambient food brands which also includes Kettle crisps and Rowse honey.
Schluckwerder was founded in 1956 and its products include the 175-year-old 'Lübecker marzipan' brands, Erasmi and Carstens.
These brands, which are produced using higher quality standards than other marzipan-based products, have been distinguished by EU protected geographic designation status since 1996.
Schluckwerder also produces nougat, chocolate rings, fondant, crocant and praline treats popular with consumers across Germany.
Welcoming the transaction, Seamus Kearney, Group CEO, Valeo Foods, said: “Schluckwerder is a great business that is supported by an extensive team of excellent people and it significantly strengthens our presence in Continental Europe."
He noted that the purchase represents the continued realisation of its strategy of building a major international food business where he sees further attractive opportunities for expansion.
"Schluckwerder is our first German acquisition and we expect to further grow our European business unit alongside our existing significant platforms in the UK and Ireland," Kearney said.
"Valeo Foods will continue to focus on targets in categories with stable demand characteristics where we can apply our team’s deep experience and expertise to drive sustainable growth,” he added.
Schluckwerder operates three modern production facilities in Lübeck and Adendorf and has 480 employees, bringing Valeo Foods’ total workforce to approximately 4,500.
This acquisition is subject to regulatory approvals, the company said.
In December 2020, Valeo Foods completed the acquisition of It’s All Good, a UK tortilla chip manufacturer, owner of the tortilla brand, Manomasa.
© 2021 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.