Irish food maker Valeo Foods Group has said its deal to buy local rival Jacob Fruitfield Food Group is part of its strategy to lead consolidation in the country’s food sector.
Valeo, formed last year when it was spun off from local agribusiness company Origin Enterprises, wanted to be at the forefront of M&A activity in Ireland’s food industry, a spokesperson said.
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“Valeo was set up a year ago and they are on the record as indicating that they wanted to lead consolidation in the Irish food sector, and this deal is very consistent with that strategy,” the spokesperson said. “They would consider it as a further step towards growing the company’s footprint in Ireland.”
He added: “The grocery market has changed pretty dramatically here in the last year or so and the consolidation is linked to the need for companies to respond to retailers and the trade through customers and consumers in terms of looking for value and choice, so that was kind of the motivation behind it.”
The spokesperson declined to comment on whether there would be any job losses with the acquisition or what its plans are for the company and its brands.
“The initial stage will be to obtain approval for the integration of the two businesses, to ensure a fairly seamless transition. The two brand portfolios are fairly complementary so there isn’t a huge amount of overlap,” the spokesperson said.
The deal remains subject to a number of conditions, including approval from Ireland’s competition watchdog, which is expected in the next few weeks.
