Valeo Foods has reached an agreement to acquire the business of Jacob Fruitfield Food Group for an undisclosed consideration. The deal is subject to regulatory approval.
Valeo was formed in 2010 and comprises a growing portfolio of leading Irish consumer brands which it supplies to Irish and international retail customers. The Valeo portfolio currently includes Batchelors, Odlums, Shamrock, Sqeez, Roma, Erin, Amigo, Lustre and Picnic. Valeo also provides tailored route-to-market services for a number of leading international consumer brands.
Jacob Fruitfield brings together Fruitfield Foods, which was acquired from Nestlé in 2002, and Irish Biscuits, which was purchased from Groupe Danone in 2004. The company’s consumer brands comprise a number of Ireland’s best known consumer food products including Jacob’s biscuits (Fig Rolls, Kimberley, Mikado and Coconut Creams), Chef sauces, Fruitfield jams and marmalades and Silvermints and Scots Clan sweets and confectionery.
The combined business of Valeo and Jacob Fruitfield will have an annual turnover of approximately EUR300 million and a combined workforce of nearly 500.
The deal is consistent with Valeo’s strategy to grow its business in the Irish food sector where international competition, domestic manufacturing costs and pressure to meet retailers’ and consumers’ requirements in terms of price and value is an ongoing and significant challenge.
Valeo is controlled by CapVest, the London based European mid-market private equity firm led by Seamus Fitzpatrick, whose investors include clients of NCB Wealth Management. The acquisition of Jacob Fruitfield will be financed by a combination of cash, vendor loan note and new equity. Apart from CapVest, significant shareholders in the enlarged Valeo include Origin Enterprises Plc, the leading Irish based ESM and AIM quoted agri-services group and one of the original investors in Valeo, and Jacob Fruitfield selling shareholders who are reinvesting in the enlarged business. Seamus Fitzpatrick, Co-founder of CapVest, will continue as Chairman of Valeo. David Andrews and Michael Carey will join the board of Valeo as non-executive directors.
Seamus Kearney, the current Managing Director of Jacob Fruitfield, will become the Group CEO of Valeo at Completion.
Seamus Fitzpatrick, Chairman, Valeo Foods Group, says: "Given the very tough trading environment, growing the business to allow investment behind our brands makes strong commercial sense. Our acquisition of Jacob Fruitfield is a significant step in what is likely to be an ongoing process of further consolidation in the Irish food sector. The enlarged Valeo that will emerge from this deal will be a more diversified and resilient Irish food company, well positioned for further growth."
Kearney adds: “Bringing together these great Irish products into a single entity is the right response in the context of the challenges and opportunities facing the Irish consumer food market. I look forward to developing the combined brands in order to strengthen their undoubted potential in the Irish market place and to further enhance their appeal to consumers.”

