Private-equity firm CapVest Partners has acquired a 32% stake in Irish food firm Valeo Foods from owner Origin Enterprises.
CapVest and Origin Enterprises set up Valeo in 2010 after the Irish agribusiness decided to spin off its consumer food arm. At the same time, Valeo snapped up Irish food business Batchelors. A year later, Valeo then acquired Jacob Fruitfield Food Group. After that deal, Origin Enterprises' shareholding in Valeo fell to 32%.
In an announcement to the London Stock Exchange today (28 July), Origin Enterprises said it had received a cash consideration of EUR86.6m (US$95.5m), comprising EUR42.5m for the 32% shareholding and EUR44.1m in full settlement of a vendor loan note.
Origin Enterprises said the proceeds would be used to reduce debt and invest in agri-services.
"The transaction furthers the group's capital reallocation objectives while tightening Origin's strategic focus as we prioritise the further development of agri-services. Valeo's proven track record and execution capability will support further category leading innovation and the extension of current sector positions," said Origin CEO Tom O'Mahoney.
Last week Valeo announced plans for an international push of its Odlums baking brand. It is investing EUR1m at its County Laois production plant.
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