September 12, 2016

U.S.-based food and agribusiness investment firm, Paine & Partners, has made an undisclosed investment in Meadow Foods, the largest independently owned dairy group and supplier of dairy products in the UK, through its $893 million Paine & Partners IV fund.

Founded in 1992, Meadow Foods currently handles more than 500 million liters of milk per year supplied by a network of more than 550 farms across the North of England, Midlands, and North and West Wales. The company plans to use the investment to support the company’s “strategy to grow the business through organic expansion and acquisitions,” according to a company statement.

“We see opportunities to drive growth both organically by increasing production, enhancing capabilities and expanding into new product lines and markets, and through strategic acquisitions that leverage the company’s supply network and customer relationships,” said Dexter Paine, founder, Chairman, and CEO of Paine & Partners.

Under the terms of the transaction, the Pickering family will exit as shareholders in Meadow Foods. However, the Chantler family will remain as substantial shareholders, while all executive management teams and the framework of the company will remain in place.

“This investment represents a new and exciting phase in the continued development of our business and will open new avenues of opportunity for all of our producer partners, customers and employees,” said Simon Chantler, executive chairman of Meadow Foods.

Over the past year, Paine & Partners has made a variety of deals across a range of agricultural and food categories.

Most recently, Paine & Partners reached an agreement in May of this year to sell Icicle Seafoods to Cooke Aquaculture for an undisclosed amount after holding the company since 2007.

In October 2015, the firm agreed to acquire Suba Seeds with operations in Italy, France and the U.S. Suba is known to be a top supplier of coriander, and controls a portfolio of crop seeds including peas, beans, radishes, cabbage, alfalfa, carrots, chicory, and onion. This deal was quickly followed by the acquisition of a majority stake in the Australian biological pest control company AgBiTech for an undisclosed amount.

With the investment in Meadow Foods, the firm continues to curate a diverse portfolio of investments along the value chain.

“In Meadow Foods, we are making a strategic investment in an industry leader that we believe is poised for continued growth,” said Dexter Paine. “We are very excited to work with the team to execute its strategy for growth.”

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Lynda Kiernan