CapVest, a European mid-market private equity firm, has reached conditional agreement to establish Valeo Foods, an Irish food company that will combine the businesses of Origin Foods, the food division of the ESM and AIM listed Origin Enterprises, with Batchelors, a privately-owned Irish ambient food company.
On completion, CapVest will hold 55 per cent of the equity of Valeo, with the balance held by Origin.
Completion is subject to Irish Competition Authority approval.
Valeo will bring together a portfolio of consumer food brands including Odlums, Shamrock and Roma from Origin, and Batchelors, Erin, Sqeez and Lustre from Batchelors.
The new business will headed by Peadar Kearney, chief executive officer, and Aidan O’Byrne, chief financial officer.
CapVest’s investment in Valeo will be held through CapVest Equity Partners II, which also holds investments in the Mater Private, a private hospital in Ireland, United Coffee, and Findus Group, a branded food company.
Investors in the fund include a range of international institutional and professional investors including clients of NCB Wealth Management.
Seamus FitzPatrick, co-founder of CapVest, says: “We have always liked the food sector as we believe it is fundamentally non discretionary in terms of demand, while simultaneously offering real potential for consolidation and growth. The opportunity to create Valeo Foods and bring together a portfolio of some of Ireland’s most iconic and instantly recognisable consumer brands is the realisation of the first stage in a clear strategy to grow Valeo’s footprint in the food sector.”
