Origin Foods, CapVest form Valeo Foods Group
September 14, 2010
by Eric Schroeder
DUBLIN, IRELAND — Origin Enterprises P.L.C., a food and agribusiness group based in Dublin, and CapVest Ltd., a London-based mid-market private equity firm, have formed Valeo Foods Group Ltd. Under terms of the venture, CapVest will hold a 55% share in Valeo while Origin will have a 45% stake.
Newly formed Valeo has agreed to acquire the branded food business of Origin as well as the Irish food company Batchelors.
Origin Foods, which Valeo is acquiring for €26 million ($33 million) in cash and deferred consideration of €35 million as a vendor loan note, comprises three of Ireland’s top food brands: Odlums, Shamrock and Roma. The brands have leading positions in the home baking and Italian food ingredients categories. Additionally, Origin Foods has an extensive manufacturing and route-to-market capability serving the retail, bakery and food service channels.
“The cash proceeds will initially be used to repay debt and ultimately to fund development of the group’s agri-services business,” said Origin, which is 71% owned by Zurich, Switzerland-based baker Aryzta AG.
In acquiring Batchelors, Valeo will be buying a company known for its baked beans, peas and pulses. The company’s brands include Batchelors, Erin, Sqeez, Amigo and Lustre serving the canned vegetable, dry sauces and mixes, ambient juices and canned fruit categories.
Valeo will be led by executives from both Origin and Batchelors. Peadar Kearney, head of Origin Foods, has been named chief executive officer of Valeo, while Aidan O’Byrne, finance director of Batchelors, has been named chief financial officer of Valeo.