Another Momentous Year for the UK Food Industry

Page 5 Page 6 Food Group Focus Food Group Focus April 2015 April 2015 www.rollits.com April 2015 Month by month guide to mergers and acquisitions continued… Food Group Focus December 2014 Danish Crown agreed to merge with Tican to bring together Denmark’s two cooperative Private equity firm Bridgepoint acquired slaughterhouse companies. Rollits’ Food Deals Cinven’s Ask and Zizzi restaurant chains Cranswick acquires Benson Park Camgrain appoints Frontier as for £250m. marketing arm March 2015 Cranwick plc, one of the UK’s most Heinz announced the sale of its frozen Gimv acquired Holland’s United Dutch successful food producers, acquired the In November 2014 central grain storage ready meals plant in Ireland to The Beverages, brewers of Oranjeboom beer, whole share capital of Hull-based Benson co-operative Camgrain appointed Authentic Food Co. from Egeria. Park Limited in October 2014. Benson Frontier Agriculture as its marketing, Park is a producer of premium British distribution and strategic partner after a Retail baker Cooplands (Doncaster) was Quintessential Brands acquired French fine cooked poultry and the acquisition has ten year relationship with Openfield. sold by its family owners to turnaround spirits company Lafragette & Legier from added another protein to Cranswick’s private equity investor ReSolve prior to a pre- French American Vintners. strong position in the pig meat market. Camgrain, based at Balsham, pack in January which saw the purchase from Cambridgeshire, handles up to 500,000 administrators of 41 shops and sandwich Hain Celestial expanded its fresh prepared Benson Park had sales of just over £41m tonnes of grain a year for its 500 vans, with the bakery and remaining shops food business by purchasing Empire Kosher in the year to August 2014. members. It has invested more than £43m closing (see Rollits’ Food Deals). Poultry, the largest kosher poultry producer across its four sites in the past ten years. in the US. Cranswick Chief Executive Adam Olam became the world’s third largest cocoa Leading UK food-to-go business Adelie Couch said the deal ”moves Cranswick During this time, strategic partnerships processor after agreeing a $1.3bn deal to Foods was bought by HIG Capital from firmly into a new protein category with have been an essential part of Cooplands (Doncaster) sold acquire ADM’s cocoa business. India Hospitality Corp with Ravi Deol and a well-invested business that has a Camgrain’s success. Camgrain Chairman to ReSolve YFM Equity Partners exited contract caterer strong presence in the fast-growing John Latham said: “We’ve always Sandeep Vyas retaining a significant stake. ReSolve Capital, a London-based Waterfall Services, headquartered in Real Good Food bought edible glitters and food-to-go sector.” formed relationships with third parties turnaround and restructuring fund, Warrington, in a £20m secondary buy-out food paint maker Rainbow Dust Colours in Irish agri-business Aurivo bought so that we bring new investment into Another momentous year London sports nutrition brand For Rollits’ Senior Partner Steve Trynka acquired retail baker Cooplands backed by LDC. a deal worth up to £7.5m to merge it with its our stores and greater capability in the (Doncaster) Limited in December 2014 Goodness Shakes. led the team acting for Cranswick in bakery ingredients business Renshaw. marketplace. It’s allowed us to keep Thai Union was the winner in an auction for this transaction. and Rollits’ Corporate Partner Nasim growing the business.” Sharf acted for the majority shareholders Lion Capital’s US tuna canner Bumble Bee In the US Post Holdings acquired another R&R Ice Cream, owned by PAI Partners, of the company in the sale. for $1.5bn. breakfast cereal producer MOM Brands acquired Nestlé’s South African ice for the UK food industry Rollits’ Commercial Partner Keith for $1.1bn. cream business. Benton advised Camgrain during the Following a review of operations appointment of Frontier. January 2015 Premium cake manufacturer Honeyrose Heinz and Kraft agreed to a merger to In the latest edition of Rollits’ Food Group Focus we review the most and the appointment of Deloitte as Findus Spain agreed to buy Nestlé’s bought gluten-free biscuit business Kent create the world’s fifth largest food maker. interesting deals in the UK & Ireland and the biggest transactions administrators, ReSolve bought back 41 La Cocinera frozen ready meals business Icelandic Seachill and Aldi & Fraser. leasehold shops and the sandwich van in Valladolid. elsewhere in the world over the last 12 months. settle dispute fleet, which secured 259 jobs. Rollits’ clients Icelandic Seachill reached Swiss food group Aryzta put its UK February 2015 In this country we have seen the fiercest This confirmed the polarisation between an out-of-court settlement with Aldi in flatbreads business into a 50/50 JV with Piper Private Equity sold food-to-go Information competition between the major food the top-end food retailers (M&S also retailers for many years and, according to continue to perform well in food) and its dispute over a “copycat” version of Rollits sponsor Honeytop founders Charles and William Eid. hot dog brand Rollover to Kerry Group’s If you have any queries on any articles in The Saucy Fish Co. UK subsidiary. this newsletter please contact: Julian Wild the latest figures from Kantar Worldpanel, the discounters, premium and value Bakkavor bought US company B. Robert’s on +44 (0)1482 337304 or email grocery prices have fallen to a like-for-like propositions doing well at opposite The companies said a confidential new award at Foods, the Charlotte manufacturer of chef AG Barr acquired cocktail solutions producer [email protected] record low. Kantar’s February 2015 update extremes and squeezing the middle-of- agreement had been reached in advance prepared meals. Funkin for a potential £21m. This newsletter is for the use of clients and estimated that British shoppers had the-road multiples. of a scheduled court hearing. Icelandic Deliciouslyorkshire will be supplied to others on request. saved £327m in the previous 12 weeks. Yorkshire ice cream maker Brymor closed European fresh produce company Total It is for general guidance only. It provides Seachill secured an interim injunction We have seen the Groceries Code down after the Moores’ family farm at High Produce acquired a 50% stake in Toronto- useful information in a concise form. Leading multiple Tesco went through a Adjudicator, Christine Tacon, being against Aldi in March 2014, claiming its Action should not be taken without Food Awards Jervaulx was sold. based Gambles to strengthen its position dismal year as it saw its market share sink given greater powers to fine the big Private equity fund buys Saucy Salmon branding and packaging in North America. obtaining specific advice. We hope you was confusingly similar. Aldi had already Rollits again hosted a table of leading Lakeland Dairies acquired Taste Trends, a have found this newsletter useful. to 29% by February 2015. But the biggest supermarkets for abusing their power Julian Wild, Head of Rollits’ Food Group Yorkshire food producers at the annual PhD Nutrition re-designed its fish-and-sauce products frozen yogurt business based in Surrey. Acquisitive Fruitarom bought FoodBlenders, If, however, you do not wish to receive talking-point was the revelation of a over suppliers and breaching the Code. Deliciouslyorkshire Food Awards Dinner at further mailings from us, please write to Leading sports nutrition company PhD before the settlement. a UK savoury ingredients company in £263m ‘black hole’ in the grocer’s accounts However, the new powers will come in too more buoyant, with many of the usual hot The Pavilions of Harrogate on Wednesday Pat Coyle, Rollits, Wilberforce Court, which emerged after the appointment late for her own enquiry into Tesco. Ms spots in North and South America, the Far Nutrition Limited was acquired by 15 October 2014. Wellingborough, for a reported £2m. High Street, Hull, HU1 1YJ. private equity fund B&B Investment Icelandic Seachill’s MD Simon Smith of new CEO, Dave Lewis. This is now Tacon appears determined to overcome East and Australia. In a large pet food deal US food group The law is stated as at 31 March 2015. being investigated by the Serious Fraud the past reticence of suppliers to complain Partners in November 2014. said: “My only comment is that I am very Rollits’ Julian Wild presented the award JM Smucker acquired San Francisco’s Big Hull Office Office and a number of senior executives about their customers by demanding that Fever Tree and Patisserie Holdings were happy with the outcome of the action”. for the Best Independent Retailer, won by PhD is a major brand in the dynamic Heart Pet Brands for $5.8bn. Wilberforce Court, High Street, departed. Under new leadership, with they give the evidence she needs. successful IPOs in 2014, but Marfrig Vanessa Deli & Café in Beverley. Hull HU1 1YJ sports nutrition market and was Rollits’ partners Keith Benton and Andrew John Allan also arriving as Chairman, delayed the flotation of its poultry US snack company Diamond Foods Tel +44 (0)1482 323239 founded by Jason Rickaby and Mark Digwood advised Icelandic Seachill. Tesco is undergoing a major overhaul. The major retailers were not alone in business, Moy Park, as the froth came off bought a 51% stake in Netherlands-based York Office Bowering in 2005. coming under fire as Premier Foods was the market for new listings later in the year. Yellow Chips, its European Kettle Chips Rowntree Wharf, Navigation Road, News was not much better at Asda, exposed on television for its ‘pay and co-manufacturer. York YO1 9WE We may need to get to the other side of PhD developed a multi-channel Tel +44 (0)1904 625790 Sainsbury’s, Morrisons and the Co-op, stay’ demands placed on suppliers, which all of which saw declining market shares. it later withdrew. Indeed it was a tough the May election in the UK before we see distribution model, including ecommerce, Belgian chocolate maker Baronie, acquirers www.rollits.com Sainsbury’s promoted Mike Coupe to year for the heavily indebted major food much confidence re-emerging. In a fast- wholesale, retail and grocery. last year of Duc d’O, bought Corby private Authorised and Regulated by the Solicitors succeed Justin King as CEO, Morrisons manufacturers, with 2 Sisters Food Group changing food retail environment caution label confectionery company Ashbury B&B Investment Partners manages Regulation Authority under number 524629 brought in Andrew Higginson as Chairman first announcing the closure of Solway remains the watchword. Chocolate out of administration. an investment fund focused on Rollits is a trading name of Rollits LLP. and replaced Dalton Philips as CEO with Foods in Corby and Avana Bakeries in consumer brands within health and Rollits LLP is a limited liability partnership, another former Tesco man, David Potts, Newport before selling both businesses to Bidvest Fresh acquired a majority stake in registered in England and Wales, wellness, personal care, beauty and meat wholesaler Henson Foods. registered number OC 348965, registered whilst unprecedented turbulence at a management buy-out. consumer healthcare. office Wilberforce Court, High Street, Hull the Co-op saw former Asda boss Allan Also in this issue Kerry announced it had agreed to sell its The food & drink M&A scene in the UK HU1 1YJ. Leighton arrive as Chairman. Month by month guide to mergers The owners of PhD Nutrition were Australian lifestyle bakery business Pinnacle, remained relatively quiet, punctuated by Julian is pictured here with owners Vanessa A list of members’ names is available for and acquisitions headquartered in Newington, to Pacific represented in the sale by Rollits’ and Stuart Barker inspection at our offices. We use the term The big winners were Waitrose (share a small number of high profile branded Corporate Partner, Nasim Sharf. Equity Partners for a reported A$250m. ‘partner’ to denote members of Rollits LLP. up to 5.2%), Aldi (4.9%) and Lidl (3.5%). deals. But the international scene was Rollits’ Food Deals Page 2 Page 4 Food Group Focus Food Group Focus April 2015 April 2015

Pinnacle Foods terminated its merger UK consumer goods group PZ Cussons Cargill agreed the purchase of ADM’s November 2014 agreement with Hillshire Brands, clearing added organic yoghurt business Five:Am global chocolate business, including a Diageo agreed to sell its Bushmills Irish the final obstacle for Hillshire to sell itself to to its Australian food operations. plant in Liverpool, for $440m. whiskey brand to Jose Cuervo in return for Tyson Foods for $7.7 billion. Month by month guide to Coffee Snobs, a Costa Coffee operator with David and Bill Jordan, who previously tequila brand Don Julio and £255m. 14 outlets, was sold by private individuals to sold Jordans cereals to ABF, took majority The long-awaited sale of United Biscuits July 2014 Kuwait’s Kout Food Group. ownership of Bedford-based European Dairy Crest announced a global partnership by private equity owners Blackstone and Oat Millers from long-time partners the with NZ’s Fonterra, the world’s largest dairy Premium confectioner Charbonnel et PAI was announced with Turkey’s Yildiz, Karsan family. mergers and acquisitions exporter, to sell demineralised whey into the Walker acquired chocolate maker House owner of Godiva chocolates, the buyer for a infant formula market. Alongside this, Dairy of Dorchester, based at Poundbury in Sausage maker Heck Foods, founded by rumoured £2bn. February 2014 Greencore added to its growing US Marine Harvest sold its £122m integrated Crest was to invest £20m at Davidstow in a Dorset, from private equity owners. Debbie and Andrew Keeble, sold a 25% business with the acquisition of breakfast farming operations on Shetland and Peterborough grower Produce World Carlyle Cardinal Ireland invested in Lily probiotic partnership with Fayrefield Foods. stake to Panoramic Growth Equity in return sandwich and stuffed baguette maker Orkney to North American company Mars completed the $2.9bn purchase of bought the root vegetable division O’Brien’s, the Irish manufacturer of premium for a £1m cash injection. Lettieri’s in Minnesota. Cooke Aquaculture. MxP Partners backed a MBO of community Procter & Gamble’s pet food business in of Fenmarc. chocolates and desserts. pub company Amber Taverns from LGV the Americas and will purchase P&G’s pet Dutch chocolate maker Baronie acquired Frozen food group Findus acquired Cargill and Copersucar combined their Parmalat was announced as the winner of Premier Foods announced a JV with the Capital in a £80m deal. food businesses in other global markets. Belgian truffle maker Duc d’O from Belgium potato brand Lutosa, which was sugar operations in a 50/50 JV, Alvean, Restaurant chain Gusto was the subject Chris Ormrod, who sold Taunton cake maker the auction for Brasil Foods’ dairy business Gores Group for its Hovis bread and flour Gudrun Group. sold following McCain’s acquisition of based in Geneva, to create the world’s of a MBO from Living Ventures backed by Ministry of Cake to Greencore in 2008, French investment fund Qualium Coca-Cola bought a 16.7% stake in for $805m. business in which Premier retained a 49% PinguinLutosa last year. largest sugar trader. Palatine Private Equity. bought it back for an initial consideration Investissement took a majority stake in beverages business Monster Energy for General Mills announced the purchase of stake and which valued the business at £87m. The Spirit pub company agreed a takeover of £8m as well as buying a second site in Biscuit Poult, one of France’s leading $2.15bn and transferred its worldwide US natural and organic snacks producer Former Northern Foods chilled food by pub and restaurant group Greene King, Torquay to open as Ministry of Puddings. private label biscuit makers. energy business into Monster. Annie’s for $820m. Key Capital Partners sold Scunthorpe sauce April 2014 distributor NFT Distribution was sold by valuing Spirit at £774m. LDC backed the deals. maker TSC Foods to Liverpool-based The shareholders of Fivemiletown Morrison’s disappointing £70m investment in In another major North American deal Phoenix Equity Partners to Hong Kong’s In the buoyant US market WhiteWave Dairy Crest agreed the sale of its fresh Edward Billington & Son, generating a 3.5x Creamery in County Tyrone agreed the Kiddicare ended with a sale to turnaround Burger King agreed to buy Tim Hortons, the Emergevest for in excess of £60m. Japanese condiments manufacturer Mizkan Foods acquired dairy products company milk business, with 4 dairies and 73 depots, return on investment. In April KCP backed sale of the business to Glanbia Ingredients investor Endless for £2m. By October Canadian coffee chain, in a $11bn deal. agreed the acquisition of Unilever’s Ragu So Delicious Dairy Free for $195m. to Müller for £80m, although the deal was the £11m MBO of specialist educational Ireland, which the following month sold the UK fine foods supplier Golden Acre Dairy Endless had sold the business on again to and Bertolli sauce brands in North America later referred to the competition authority, caterer Alliance in Partnership in Oldbury, Fivemiletown cheese brands to Dale Farm. Foods acquired seafood and delicatessen online retailer Worldstores. Vision Capital-owned Pork Farms agreed for $2.1bn. October 2014 the CMA. West Midlands. supplier Elsinore Foods. to buy Kerry Foods’ chilled savoury pastry Brussels-based private equity firm Verlinvest Utopia Foods, headed by Veepul Patel, factories at Poole and Spalding, but this Ireland’s Valeo Foods acquired food and China’s Bright Foods, owners of Weetabix, Faccenda agreed the purchase of Cherry Leading own-label supplier Kolak Snack made a significant investment in UK gluten- completed a MBO of Avana Bakeries in was later subject to an investigation by the beverage companies Robert Roberts and May 2014 acquired a majority stake in Israeli food Valley Farm’s duck processing business Foods acquired Reading-based Berkshire free specialist Genius. Newport from 2 Sisters Food Group and Competition and Markets Authority. Kelkin from DCC for €60m. Hain Celestial, which has major interests in company Tnuva. Cherry Valley Foods with a turnover Foods and NC Snacks, a producer of followed it with the further buy-out of Food, agriculture and engineering plc the UK including Daniels, agreed to acquire The CMA cleared Noble’s acquisition of Flavors Holdings acquired Merisant, of £45m. ethnic snacks. Scandinavaian confectionery company Solway Foods in Corby. Carr’s Milling acquired North Shields-based US organic and gluten-free Rudi’s Organic Manton’s two egg processing factories at the US manufacturer of sweeteners, Cloetta acquired Ireland’s Aran Candy, Danish Crown’s UK arm Tulip acquired Irish meat processor Dawn Meats agreed the Chirton Engineering for an initial £2.7m plus Bakery from Charterhouse Equity Partners Casual dining group Gondola completed Gainsborough and Harrogate. including Canderel. owners of The Jelly Bean Factory, for an charcuterie business Castellano, based acquisition of the Jasper beef abbatoir at an earn-out. for $61m. the sale of Pizza Express to Chinese private initial $21m. Heinz announced the closure of its factory at in Bristol. equity investor Hony Capital for £900m. Crawley pasta and sauce maker Pasta Treburley in Cornwall. London-based online takeaway service Yorkshire food contract packer IPS Group, Cott Corp’s UK business acquired Haydock- Reale, built up by the Lopalco family before Westwick in Norfolk as its licence to produce Just Eat was admitted to trading on LSE employing nearly 500 people, was sold Unilever sold its Slim-Fast meal replacement US group Pinnacle Foods agreed to buy Northern Ireland co-operative United based Aimia Foods for an initial £47m, being sold in 2012, went into administration Aunt Bessie’s frozen potato products comes on 8 April. to Culina. brand in the US to Kainos Capital in a further Canadian plant-protein business Gardein Dairy Farmers and its Dale Farm subsidiary taking the North American company into with the loss of nearly 170 jobs. to an end in 2015. move away from food. for $155m from TSG Consumer Partners and bought Ash Manor Cheese with a packing Valeo, the Irish owner of brands such as R&R Ice Cream, owned by PAI Partners, hot drinks and whiteners. Bakery group Finsbury acquired Fletchers founder Yves Potvin. plant in Wrexham. March 2014 Jacobs and Batchelors, acquired Rowse launched an offering of £315m senior In one of the most eye-catching deals of the September 2014 Bakeries for £56m. Fletchers has operations Wirral-based Uren, with factories in Poland Premier Foods announced a major balance honey from Wellness Foods. secured notes to pay down existing debt due June 2014 year ADM bought WILD Flavors for €2.3bn Diageo bought 26% of United Spirits for in Sheffield, London and Manchester Leading family food business Samworth and Chile, underwent a MBO from the sheet restructuring with a £353m equity in 2017. Later in the month R&R acquired Clipper Logistics, which distributes for from Dr Hans-Peter Wild and KKR. £1.1bn, raising its stake in India’s largest producing fresh and frozen baked goods for Bros, best known as manufacturer of Ginsters CVC Capital Partners agreed to buy a Uren family. raise, £475m senior high yield loan notes the Australian consumer group Peters Food many leading multiples, floated on the Stock liquor company to 55%. pasties and other chilled foods, acquired near 30% stake in quoted Spanish olive oil The Co-operative Group sold its chain of food service. and a £300m revolving credit facility. € from Pacific Equity Partners. Market with founder Steve Parkin retaining a Canada’s beverages corporation Cott malt loaf manufacturer Soreen in Manchester group Deoleo, valuing it at 439m, prior to over 700 pharmacies to wholesaler Bestway Ireland’s Total Produce acquired a 45% stake London milk processor Freshways acquired near 35% stake. agreed to acquire DSS, a leading US water from McCambridge Group. Tangerine Confectionery said it was a full takeover. Bernard Matthews announced the planned for £620m. in Californian avocado supplier Eco Farms. the DairyStix dairy business at Plympton closure of the former Lincs Turkeys factory and coffee supplier, for $1.25bn. French multinational Danone invested closing one of its two manufacturing sites in AAK acquired the oil and fats business of Brakes sold its ready meals business Creative Anglia Maltings, owners of Crisp and Edme, Another Irish food and nutrition group, in Devon. at Grainthorpe in Lincolnshire with 80 jobs € €486m to increase its stake in Chinese dairy Blackpool with the loss of 160 jobs; Potato CSM based in Merksem in Belgium. Foods in Flint to David Wood Baking. acquired brewing ingredients and cereals Glanbia, added to its expanding sports Finnish company Raisio paid 88m to buy at risk. Bright Food took majority control of producer Mengniu to almost 10%. supplier Greenvale shed 190 jobs by closing manufacturer MFP in Northallerton. nutrition business with the acquisition of US back the licensing rights to cholesterol- EIS fund Enact, launched by Endless last year, Marfrig’s Moy Park in Northern Ireland raised Filippo Berio olive oil maker Salov from its packing plant at Market Drayton; Creative Arla Foods agreed to sell its Danapak protein shakes business Isopure for $153m. lowering Benecol from Johnson & Johnson. Scampi supplier Whitby Seafoods completed its first acquisition by acquiring 35 £200m in the European bond market. Hain Celestial, a major investor in the UK the founding Fontana family. Foods, part of Brakes, announced the packaging business to Austrian increased its share of that market by West Cornwall Pasty Company outlets and food industry, bought out its JV partner LDC successfully completed the IPO of closure of its Flint frozen ready meals plant company Schur Flexibles as it focused Premium cereal maker Dorset Cereals Sime Darby, one of Malaysia’s largest acquiring Galloway Seafoods in Scotland the brand from the administrators. Pegasus Capital to take control of Hain mixer business Fever-Tree at a valuation with 149 jobs going. on dairy production. changed hands again, this time being conglomerates, made a £1.1bn all-cash offer from Sco-Fro Group. Pure Protein. of £154m, with LDC and management Another food company rescued from bought by Associated British Foods, for London-listed New Britain Palm Oil. Swiss bakery group Aryzta acquired two Bakkavor sold a 40% stake in its Italpizza retaining about 35%. administration was Fabulous Bakin’ Boys, owners of Jordans, for £50m. Food retailer Iceland placed £950m of United Biscuits bought a stake in Nigerian bakeries in North America, Pineridge in Italian pizza manufacturing business to Branded grocery manufacturer Symington’s, bought by the Dutch bakery group Daelmans. high yield bonds to refinance debt and French co-op Terrena sold a 49% stake in biscuit company A & P Foods from the Canada and Cloverhill in USA, for €730m. investment company Dreamfood. Ian Harvey led a MBO of family contract based in Leeds, bought Consett ambient support expansion. beef and pork business Elivia to Ireland’s Assudamal Group to boost its sales in Africa. In yet another purchase from administrators packing and eggs business Framptons, meals business Tanfield Foods. Leading dairy co-op Arla announced a Rotherham-based meat retailer Crawshaw Dawn Meats. Euro Foods bought Welsh packaging based in Shepton Mallet. Sustainable investor Bridges Ventures bought Mexico’s Grupo Bimbo paid £1bn to merger with its Belgian rival EGM Walhorn, acquired Pocklington butcher East Cranswick plc made its first move into the company Brown Bear Food. Welsh energy bar company Wholebake, Brazilian meat group JBS paid $1.3bn to acquire Maple Leaf Foods’ 90% stake in which has 800 members in Belgium, Yorkshire Beef. PAI Partners bought a 45% stake in French cooked poultry market with the acquisition known for its 9bar brand. acquire Australian ham and bacon producer Canada Bread, the second largest bread Germany and Holland. Herbs and spice producer Barts Ingredients company Labeyrie Fine Foods, makers of Hull-based Benson Park with sales of over Conviviality Retail bought the trade and Primo Smallgoods. manufacturer in Canada and owner of the acquired sauce and paste business OTP of foie gras and smoked salmon, in a deal Leek-based Adams Foods bought Crewe £40m (see Rollits’ Food Deals). The franchisee of natural food supplement assets of 26 Rhythm and Booze shops from Maple Leaf bagel business in the UK. based in Berkshire. valuing the target at €590m. specialist ingredients business Foodtech Private equity firm Onex agreed to buy Juice Plus+, NSA UK, was sold to NSA RNB Stores, part of Bibby Retail Services. Chiquita Brands accepted the $681m from Dairy Crest for £1.2m. SIG Combibloc, the world’s second largest Unilever agreed the sale of its Bifi and International as part of a consolidation of its Fast-growing specialist ingredients company Premier Foods entered a JV with Speciality takeover offer from Brazilian juice company € A famous name to succumb to a foreign drinks carton supplier, for an initial 3.7bn. Peperami meat snack brands and a factory in global operations. Orchard Valley Foods based in Tenbury Wells Powders to have its powdered beverages Cutrale and investment group Safra, having takeover was Australia’s largest food Germany to beef jerky company Jack Link’s. bought Food Ingredients International. and desserts produced by the new August 2014 rejected a merger with Ireland’s Fyffes. As part of a larger deal, SAB Miller agreed Singapore’s investment agency Temasek producer Goodman Fielder which agreed Lesaffre sold BFP Wholesale, the national Knighton Foods. to sell Appletiser to Coca-Cola and license In the same category, Australia’s Mariani backed a $4.2bn takeover bid for Olam Acquisitive US company Post announced its a A$1.4bn sale to Singapore agribusiness distributor of bakery products located Hull-based Chaucer Foods agreed the other brands for $260m. Foods bought Yorkshire meat snacks International and gained control of the biggest takeover of dairy producer Michael Wilmar International and Hong Kong UK herbs producer Langmead bought out in Sevenoaks, to private equity investor purchase of 65% of US healthy snacks company Bare Earth out of administration. commodity trader the following month. Foods for $2.4bn. investment fund First Pacific. competitor Scotherbs. Zimt Holding. business Crunchies. Continued on back cover… Page 5 Page 6 Food Group Focus Food Group Focus April 2015 April 2015 www.rollits.com April 2015 Month by month guide to mergers and acquisitions continued… Food Group Focus December 2014 Danish Crown agreed to merge with Tican to bring together Denmark’s two cooperative Private equity firm Bridgepoint acquired slaughterhouse companies. Rollits’ Food Deals Cinven’s Ask and Zizzi restaurant chains Cranswick acquires Benson Park Camgrain appoints Frontier as for £250m. marketing arm March 2015 Cranwick plc, one of the UK’s most Heinz announced the sale of its frozen Gimv acquired Holland’s United Dutch successful food producers, acquired the In November 2014 central grain storage ready meals plant in Ireland to The Beverages, brewers of Oranjeboom beer, whole share capital of Hull-based Benson co-operative Camgrain appointed Authentic Food Co. from Egeria. Park Limited in October 2014. Benson Frontier Agriculture as its marketing, Park is a producer of premium British distribution and strategic partner after a Retail baker Cooplands (Doncaster) was Quintessential Brands acquired French fine cooked poultry and the acquisition has ten year relationship with Openfield. sold by its family owners to turnaround spirits company Lafragette & Legier from added another protein to Cranswick’s private equity investor ReSolve prior to a pre- French American Vintners. strong position in the pig meat market. Camgrain, based at Balsham, pack in January which saw the purchase from Cambridgeshire, handles up to 500,000 administrators of 41 shops and sandwich Hain Celestial expanded its fresh prepared Benson Park had sales of just over £41m tonnes of grain a year for its 500 vans, with the bakery and remaining shops food business by purchasing Empire Kosher in the year to August 2014. members. It has invested more than £43m closing (see Rollits’ Food Deals). Poultry, the largest kosher poultry producer across its four sites in the past ten years. in the US. Cranswick Chief Executive Adam Olam became the world’s third largest cocoa Leading UK food-to-go business Adelie Couch said the deal ”moves Cranswick During this time, strategic partnerships processor after agreeing a $1.3bn deal to Foods was bought by HIG Capital from firmly into a new protein category with have been an essential part of Cooplands (Doncaster) sold acquire ADM’s cocoa business. India Hospitality Corp with Ravi Deol and a well-invested business that has a Camgrain’s success. Camgrain Chairman to ReSolve YFM Equity Partners exited contract caterer strong presence in the fast-growing John Latham said: “We’ve always Sandeep Vyas retaining a significant stake. ReSolve Capital, a London-based Waterfall Services, headquartered in Real Good Food bought edible glitters and food-to-go sector.” formed relationships with third parties turnaround and restructuring fund, Warrington, in a £20m secondary buy-out food paint maker Rainbow Dust Colours in Irish agri-business Aurivo bought so that we bring new investment into Another momentous year London sports nutrition brand For Rollits’ Senior Partner Steve Trynka acquired retail baker Cooplands backed by LDC. a deal worth up to £7.5m to merge it with its our stores and greater capability in the (Doncaster) Limited in December 2014 Goodness Shakes. led the team acting for Cranswick in bakery ingredients business Renshaw. marketplace. It’s allowed us to keep Thai Union was the winner in an auction for this transaction. and Rollits’ Corporate Partner Nasim growing the business.” Sharf acted for the majority shareholders Lion Capital’s US tuna canner Bumble Bee In the US Post Holdings acquired another R&R Ice Cream, owned by PAI Partners, of the company in the sale. for $1.5bn. breakfast cereal producer MOM Brands acquired Nestlé’s South African ice for the UK food industry Rollits’ Commercial Partner Keith for $1.1bn. cream business. Benton advised Camgrain during the Following a review of operations appointment of Frontier. January 2015 Premium cake manufacturer Honeyrose Heinz and Kraft agreed to a merger to In the latest edition of Rollits’ Food Group Focus we review the most and the appointment of Deloitte as Findus Spain agreed to buy Nestlé’s bought gluten-free biscuit business Kent create the world’s fifth largest food maker. interesting deals in the UK & Ireland and the biggest transactions administrators, ReSolve bought back 41 La Cocinera frozen ready meals business Icelandic Seachill and Aldi & Fraser. leasehold shops and the sandwich van in Valladolid. elsewhere in the world over the last 12 months. settle dispute fleet, which secured 259 jobs. Rollits’ clients Icelandic Seachill reached Swiss food group Aryzta put its UK February 2015 In this country we have seen the fiercest This confirmed the polarisation between an out-of-court settlement with Aldi in flatbreads business into a 50/50 JV with Piper Private Equity sold food-to-go Information competition between the major food the top-end food retailers (M&S also retailers for many years and, according to continue to perform well in food) and its dispute over a “copycat” version of Rollits sponsor Honeytop founders Charles and William Eid. hot dog brand Rollover to Kerry Group’s If you have any queries on any articles in The Saucy Fish Co. UK subsidiary. this newsletter please contact: Julian Wild the latest figures from Kantar Worldpanel, the discounters, premium and value Bakkavor bought US company B. Robert’s on +44 (0)1482 337304 or email grocery prices have fallen to a like-for-like propositions doing well at opposite The companies said a confidential new award at Foods, the Charlotte manufacturer of chef AG Barr acquired cocktail solutions producer [email protected] record low. Kantar’s February 2015 update extremes and squeezing the middle-of- agreement had been reached in advance prepared meals. Funkin for a potential £21m. This newsletter is for the use of clients and estimated that British shoppers had the-road multiples. of a scheduled court hearing. Icelandic Deliciouslyorkshire will be supplied to others on request. saved £327m in the previous 12 weeks. Yorkshire ice cream maker Brymor closed European fresh produce company Total It is for general guidance only. It provides Seachill secured an interim injunction We have seen the Groceries Code down after the Moores’ family farm at High Produce acquired a 50% stake in Toronto- useful information in a concise form. Leading multiple Tesco went through a Adjudicator, Christine Tacon, being against Aldi in March 2014, claiming its Action should not be taken without Food Awards Jervaulx was sold. based Gambles to strengthen its position dismal year as it saw its market share sink given greater powers to fine the big Private equity fund buys Saucy Salmon branding and packaging in North America. obtaining specific advice. We hope you was confusingly similar. Aldi had already Rollits again hosted a table of leading Lakeland Dairies acquired Taste Trends, a have found this newsletter useful. to 29% by February 2015. But the biggest supermarkets for abusing their power Julian Wild, Head of Rollits’ Food Group Yorkshire food producers at the annual PhD Nutrition re-designed its fish-and-sauce products frozen yogurt business based in Surrey. Acquisitive Fruitarom bought FoodBlenders, If, however, you do not wish to receive talking-point was the revelation of a over suppliers and breaching the Code. Deliciouslyorkshire Food Awards Dinner at further mailings from us, please write to Leading sports nutrition company PhD before the settlement. a UK savoury ingredients company in £263m ‘black hole’ in the grocer’s accounts However, the new powers will come in too more buoyant, with many of the usual hot The Pavilions of Harrogate on Wednesday Pat Coyle, Rollits, Wilberforce Court, which emerged after the appointment late for her own enquiry into Tesco. Ms spots in North and South America, the Far Nutrition Limited was acquired by 15 October 2014. Wellingborough, for a reported £2m. High Street, Hull, HU1 1YJ. private equity fund B&B Investment Icelandic Seachill’s MD Simon Smith of new CEO, Dave Lewis. This is now Tacon appears determined to overcome East and Australia. In a large pet food deal US food group The law is stated as at 31 March 2015. being investigated by the Serious Fraud the past reticence of suppliers to complain Partners in November 2014. said: “My only comment is that I am very Rollits’ Julian Wild presented the award JM Smucker acquired San Francisco’s Big Hull Office Office and a number of senior executives about their customers by demanding that Fever Tree and Patisserie Holdings were happy with the outcome of the action”. for the Best Independent Retailer, won by PhD is a major brand in the dynamic Heart Pet Brands for $5.8bn. Wilberforce Court, High Street, departed. Under new leadership, with they give the evidence she needs. successful IPOs in 2014, but Marfrig Vanessa Deli & Café in Beverley. Hull HU1 1YJ sports nutrition market and was Rollits’ partners Keith Benton and Andrew John Allan also arriving as Chairman, delayed the flotation of its poultry US snack company Diamond Foods Tel +44 (0)1482 323239 founded by Jason Rickaby and Mark Digwood advised Icelandic Seachill. Tesco is undergoing a major overhaul. The major retailers were not alone in business, Moy Park, as the froth came off bought a 51% stake in Netherlands-based York Office Bowering in 2005. coming under fire as Premier Foods was the market for new listings later in the year. Yellow Chips, its European Kettle Chips Rowntree Wharf, Navigation Road, News was not much better at Asda, exposed on television for its ‘pay and co-manufacturer. York YO1 9WE We may need to get to the other side of PhD developed a multi-channel Tel +44 (0)1904 625790 Sainsbury’s, Morrisons and the Co-op, stay’ demands placed on suppliers, which all of which saw declining market shares. it later withdrew. Indeed it was a tough the May election in the UK before we see distribution model, including ecommerce, Belgian chocolate maker Baronie, acquirers www.rollits.com Sainsbury’s promoted Mike Coupe to year for the heavily indebted major food much confidence re-emerging. In a fast- wholesale, retail and grocery. last year of Duc d’O, bought Corby private Authorised and Regulated by the Solicitors succeed Justin King as CEO, Morrisons manufacturers, with 2 Sisters Food Group changing food retail environment caution label confectionery company Ashbury B&B Investment Partners manages Regulation Authority under number 524629 brought in Andrew Higginson as Chairman first announcing the closure of Solway remains the watchword. Chocolate out of administration. an investment fund focused on Rollits is a trading name of Rollits LLP. and replaced Dalton Philips as CEO with Foods in Corby and Avana Bakeries in consumer brands within health and Rollits LLP is a limited liability partnership, another former Tesco man, David Potts, Newport before selling both businesses to Bidvest Fresh acquired a majority stake in registered in England and Wales, wellness, personal care, beauty and meat wholesaler Henson Foods. registered number OC 348965, registered whilst unprecedented turbulence at a management buy-out. consumer healthcare. office Wilberforce Court, High Street, Hull the Co-op saw former Asda boss Allan Also in this issue Kerry announced it had agreed to sell its The food & drink M&A scene in the UK HU1 1YJ. Leighton arrive as Chairman. Month by month guide to mergers The owners of PhD Nutrition were Australian lifestyle bakery business Pinnacle, remained relatively quiet, punctuated by Julian is pictured here with owners Vanessa A list of members’ names is available for and acquisitions headquartered in Newington, to Pacific represented in the sale by Rollits’ and Stuart Barker inspection at our offices. We use the term The big winners were Waitrose (share a small number of high profile branded Corporate Partner, Nasim Sharf. Equity Partners for a reported A$250m. ‘partner’ to denote members of Rollits LLP. up to 5.2%), Aldi (4.9%) and Lidl (3.5%). deals. But the international scene was Rollits’ Food Deals Page 5 Page 6 Food Group Focus Food Group Focus April 2015 April 2015 www.rollits.com April 2015 Month by month guide to mergers and acquisitions continued… Food Group Focus December 2014 Danish Crown agreed to merge with Tican to bring together Denmark’s two cooperative Private equity firm Bridgepoint acquired slaughterhouse companies. Rollits’ Food Deals Cinven’s Ask and Zizzi restaurant chains Cranswick acquires Benson Park Camgrain appoints Frontier as for £250m. marketing arm March 2015 Cranwick plc, one of the UK’s most Heinz announced the sale of its frozen Gimv acquired Holland’s United Dutch successful food producers, acquired the In November 2014 central grain storage ready meals plant in Ireland to The Beverages, brewers of Oranjeboom beer, whole share capital of Hull-based Benson co-operative Camgrain appointed Authentic Food Co. from Egeria. Park Limited in October 2014. Benson Frontier Agriculture as its marketing, Park is a producer of premium British distribution and strategic partner after a Retail baker Cooplands (Doncaster) was Quintessential Brands acquired French fine cooked poultry and the acquisition has ten year relationship with Openfield. sold by its family owners to turnaround spirits company Lafragette & Legier from added another protein to Cranswick’s private equity investor ReSolve prior to a pre- French American Vintners. strong position in the pig meat market. Camgrain, based at Balsham, pack in January which saw the purchase from Cambridgeshire, handles up to 500,000 administrators of 41 shops and sandwich Hain Celestial expanded its fresh prepared Benson Park had sales of just over £41m tonnes of grain a year for its 500 vans, with the bakery and remaining shops food business by purchasing Empire Kosher in the year to August 2014. members. It has invested more than £43m closing (see Rollits’ Food Deals). Poultry, the largest kosher poultry producer across its four sites in the past ten years. in the US. Cranswick Chief Executive Adam Olam became the world’s third largest cocoa Leading UK food-to-go business Adelie Couch said the deal ”moves Cranswick During this time, strategic partnerships processor after agreeing a $1.3bn deal to Foods was bought by HIG Capital from firmly into a new protein category with have been an essential part of Cooplands (Doncaster) sold acquire ADM’s cocoa business. India Hospitality Corp with Ravi Deol and a well-invested business that has a Camgrain’s success. Camgrain Chairman to ReSolve YFM Equity Partners exited contract caterer strong presence in the fast-growing John Latham said: “We’ve always Sandeep Vyas retaining a significant stake. ReSolve Capital, a London-based Waterfall Services, headquartered in Real Good Food bought edible glitters and food-to-go sector.” formed relationships with third parties turnaround and restructuring fund, Warrington, in a £20m secondary buy-out food paint maker Rainbow Dust Colours in Irish agri-business Aurivo bought so that we bring new investment into Another momentous year London sports nutrition brand For Rollits’ Senior Partner Steve Trynka acquired retail baker Cooplands backed by LDC. a deal worth up to £7.5m to merge it with its our stores and greater capability in the (Doncaster) Limited in December 2014 Goodness Shakes. led the team acting for Cranswick in bakery ingredients business Renshaw. marketplace. It’s allowed us to keep Thai Union was the winner in an auction for this transaction. and Rollits’ Corporate Partner Nasim growing the business.” Sharf acted for the majority shareholders Lion Capital’s US tuna canner Bumble Bee In the US Post Holdings acquired another R&R Ice Cream, owned by PAI Partners, of the company in the sale. for $1.5bn. breakfast cereal producer MOM Brands acquired Nestlé’s South African ice for the UK food industry Rollits’ Commercial Partner Keith for $1.1bn. cream business. Benton advised Camgrain during the Following a review of operations appointment of Frontier. January 2015 Premium cake manufacturer Honeyrose Heinz and Kraft agreed to a merger to In the latest edition of Rollits’ Food Group Focus we review the most and the appointment of Deloitte as Findus Spain agreed to buy Nestlé’s bought gluten-free biscuit business Kent create the world’s fifth largest food maker. interesting deals in the UK & Ireland and the biggest transactions administrators, ReSolve bought back 41 La Cocinera frozen ready meals business Icelandic Seachill and Aldi & Fraser. leasehold shops and the sandwich van in Valladolid. elsewhere in the world over the last 12 months. settle dispute fleet, which secured 259 jobs. Rollits’ clients Icelandic Seachill reached Swiss food group Aryzta put its UK February 2015 In this country we have seen the fiercest This confirmed the polarisation between an out-of-court settlement with Aldi in flatbreads business into a 50/50 JV with Piper Private Equity sold food-to-go Information competition between the major food the top-end food retailers (M&S also retailers for many years and, according to continue to perform well in food) and its dispute over a “copycat” version of Rollits sponsor Honeytop founders Charles and William Eid. hot dog brand Rollover to Kerry Group’s If you have any queries on any articles in The Saucy Fish Co. UK subsidiary. this newsletter please contact: Julian Wild the latest figures from Kantar Worldpanel, the discounters, premium and value Bakkavor bought US company B. Robert’s on +44 (0)1482 337304 or email grocery prices have fallen to a like-for-like propositions doing well at opposite The companies said a confidential new award at Foods, the Charlotte manufacturer of chef AG Barr acquired cocktail solutions producer [email protected] record low. Kantar’s February 2015 update extremes and squeezing the middle-of- agreement had been reached in advance prepared meals. Funkin for a potential £21m. This newsletter is for the use of clients and estimated that British shoppers had the-road multiples. of a scheduled court hearing. Icelandic Deliciouslyorkshire will be supplied to others on request. saved £327m in the previous 12 weeks. Yorkshire ice cream maker Brymor closed European fresh produce company Total It is for general guidance only. It provides Seachill secured an interim injunction We have seen the Groceries Code down after the Moores’ family farm at High Produce acquired a 50% stake in Toronto- useful information in a concise form. Leading multiple Tesco went through a Adjudicator, Christine Tacon, being against Aldi in March 2014, claiming its Action should not be taken without Food Awards Jervaulx was sold. based Gambles to strengthen its position dismal year as it saw its market share sink given greater powers to fine the big Private equity fund buys Saucy Salmon branding and packaging in North America. obtaining specific advice. We hope you was confusingly similar. Aldi had already Rollits again hosted a table of leading Lakeland Dairies acquired Taste Trends, a have found this newsletter useful. to 29% by February 2015. But the biggest supermarkets for abusing their power Julian Wild, Head of Rollits’ Food Group Yorkshire food producers at the annual PhD Nutrition re-designed its fish-and-sauce products frozen yogurt business based in Surrey. Acquisitive Fruitarom bought FoodBlenders, If, however, you do not wish to receive talking-point was the revelation of a over suppliers and breaching the Code. Deliciouslyorkshire Food Awards Dinner at further mailings from us, please write to Leading sports nutrition company PhD before the settlement. a UK savoury ingredients company in £263m ‘black hole’ in the grocer’s accounts However, the new powers will come in too more buoyant, with many of the usual hot The Pavilions of Harrogate on Wednesday Pat Coyle, Rollits, Wilberforce Court, which emerged after the appointment late for her own enquiry into Tesco. Ms spots in North and South America, the Far Nutrition Limited was acquired by 15 October 2014. Wellingborough, for a reported £2m. High Street, Hull, HU1 1YJ. private equity fund B&B Investment Icelandic Seachill’s MD Simon Smith of new CEO, Dave Lewis. This is now Tacon appears determined to overcome East and Australia. In a large pet food deal US food group The law is stated as at 31 March 2015. being investigated by the Serious Fraud the past reticence of suppliers to complain Partners in November 2014. said: “My only comment is that I am very Rollits’ Julian Wild presented the award JM Smucker acquired San Francisco’s Big Hull Office Office and a number of senior executives about their customers by demanding that Fever Tree and Patisserie Holdings were happy with the outcome of the action”. for the Best Independent Retailer, won by PhD is a major brand in the dynamic Heart Pet Brands for $5.8bn. Wilberforce Court, High Street, departed. Under new leadership, with they give the evidence she needs. successful IPOs in 2014, but Marfrig Vanessa Deli & Café in Beverley. Hull HU1 1YJ sports nutrition market and was Rollits’ partners Keith Benton and Andrew John Allan also arriving as Chairman, delayed the flotation of its poultry US snack company Diamond Foods Tel +44 (0)1482 323239 founded by Jason Rickaby and Mark Digwood advised Icelandic Seachill. Tesco is undergoing a major overhaul. The major retailers were not alone in business, Moy Park, as the froth came off bought a 51% stake in Netherlands-based York Office Bowering in 2005. coming under fire as Premier Foods was the market for new listings later in the year. Yellow Chips, its European Kettle Chips Rowntree Wharf, Navigation Road, News was not much better at Asda, exposed on television for its ‘pay and co-manufacturer. York YO1 9WE We may need to get to the other side of PhD developed a multi-channel Tel +44 (0)1904 625790 Sainsbury’s, Morrisons and the Co-op, stay’ demands placed on suppliers, which all of which saw declining market shares. it later withdrew. Indeed it was a tough the May election in the UK before we see distribution model, including ecommerce, Belgian chocolate maker Baronie, acquirers www.rollits.com Sainsbury’s promoted Mike Coupe to year for the heavily indebted major food much confidence re-emerging. In a fast- wholesale, retail and grocery. last year of Duc d’O, bought Corby private Authorised and Regulated by the Solicitors succeed Justin King as CEO, Morrisons manufacturers, with 2 Sisters Food Group changing food retail environment caution label confectionery company Ashbury B&B Investment Partners manages Regulation Authority under number 524629 brought in Andrew Higginson as Chairman first announcing the closure of Solway remains the watchword. Chocolate out of administration. an investment fund focused on Rollits is a trading name of Rollits LLP. and replaced Dalton Philips as CEO with Foods in Corby and Avana Bakeries in consumer brands within health and Rollits LLP is a limited liability partnership, another former Tesco man, David Potts, Newport before selling both businesses to Bidvest Fresh acquired a majority stake in registered in England and Wales, wellness, personal care, beauty and meat wholesaler Henson Foods. registered number OC 348965, registered whilst unprecedented turbulence at a management buy-out. consumer healthcare. office Wilberforce Court, High Street, Hull the Co-op saw former Asda boss Allan Also in this issue Kerry announced it had agreed to sell its The food & drink M&A scene in the UK HU1 1YJ. Leighton arrive as Chairman. Month by month guide to mergers The owners of PhD Nutrition were Australian lifestyle bakery business Pinnacle, remained relatively quiet, punctuated by Julian is pictured here with owners Vanessa A list of members’ names is available for and acquisitions headquartered in Newington, to Pacific represented in the sale by Rollits’ and Stuart Barker inspection at our offices. We use the term The big winners were Waitrose (share a small number of high profile branded Corporate Partner, Nasim Sharf. Equity Partners for a reported A$250m. ‘partner’ to denote members of Rollits LLP. up to 5.2%), Aldi (4.9%) and Lidl (3.5%). deals. But the international scene was Rollits’ Food Deals