UK – 2 Sisters Food Group has entered into an agreement to sell its UK-based pudding business, trading as Matthew Walker to Valeo Foods Group for £67 million (US$83.48m).
Headquartered in Derbyshire, Matthew Walker produces a range of bakery products including Christmas puddings, seasonal sponges, cakes and free-from desserts for the retail and foodservice channels.
Following the acquisition, Matthew Walker will join Valeo Foods’ portfolio of brands such as Rowse Honey, Barratt, Jacob’s, Fox’s Glacier Mints, Balconi and the the recently acquired Kettle Crisps brand in Europe.
Ian Ainsworth, managing director of Valeo Foods UK, said: “The strength of Matthew Walker’s market leadership combined with the strong consumer demand for its high-quality products make the business and its brands a great addition to our existing Valeo UK growth platform.
“We look forward to welcoming and working with our new colleagues in Matthew Walker as we pursue our ambitious growth plans for the business.”
The acquisition will add approximately €40 million (US$44.12 million) in sales to Valeo Foods, taking annualised sales for the group to more than €1 billion.
Ranjit Singh, president of 2 Sisters parent company Boparan Holdings Ltd, said: “After making our intentions known earlier this year, we are pleased to announce this sale today.
“It is another significant deal, with good enterprise value, underlining our commitment to transforming our business.
“It strengthens our balance sheet even further and shows we are following through with our promises by focusing on our key strengths.”
The sale of Bakery Foods is the latest in a string of disposals by 2 Sisters as it continues to focus on strengthening its core operations.
Ronald Kers, chief executive of Boparan Holdings Ltd, added: “This sale is further good news as we continue at pace with our turnaround plan.
“We remain very much on track to meet our strategic aims of focusing on our core businesses and improving our operational performance.”
The finalisation of the transaction is subject to customary closing conditions and is expected to complete in the coming weeks.
Established in 2010 as a portfolio company of CapVest Partners, Valeo Foods has completed 14 acquisitions over the past nine years.