May 10, 2021

By Lynda Kiernan, Global AgInvesting Media

Bain Capital Private Equity (Bain) has outbid a cast of rivals to acquire pan European food company Valeo Foods Group from CapVest in a deal exceeding €1.7 billion (US$2 billion). 

Headquartered in Dublin, Ireland, since its founding in 2010, and led by CEO Seamus Kearney, Valeo is a leading producer of category defining branded and private label foods.

Created by London-based CapVest as a cornerstone to acquire Irish food companies Batchelors and Origin Foods, the group has been a rapidly growing consolidator in the food sector, making more than 15 acquisitions since its launch to build a portfolio that includes Kettle Crisps, Odlums, Jacobs, Rowse, Barratt, and Balconi, among others – some with histories dating back 150 years.

“Valeo Foods has been developed into a key player in the European food industry by a talented and ambitious team,” said Nigel Walder, a managing director at Bain Capital Private Equity.

“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.”

Today the group produces more than 400,000 tons of products per year through its 24 manufacturing facilities, serving 106 global markets. And from its origins posting €200 million (US$243 million) in net sales in 2010, the company has grown its sales to approximately €1.1 billion (US$1.3 billion) for the 12 months through March 2021.

“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, 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. We look forward to seeing Valeo Foods continue to flourish under Bain Capital’s ownership.”

In January of this year it was reported that Valeo posted operating profits €64.2 million (US$78 million) for the year, with operating profit margins of 7 percent; net debt just below €790 million (US$961 million), and net assets of €1.4 billion (US$1.7 billion) at the year’s end.

Commenting on the sale, Kearney, who will continue to lead the business with the existing management team, said, “This transaction is a very positive reflection of the quality of our business and all of our people. It is also 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.”

“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.  We are very excited to work alongside the Bain Capital team as we continue our journey and pursue our ambitious plans for further growth in the future.” 

Throughout the deal process, Bain 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 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.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com.