Paulig has added to its portfolio of sauces and condiments with the acquisition of the UK business Panesar Foods.
The Finland-based food and beverage company said Panesar Foods generated a turnover last year of £59m ($76.5m) and operates three production facilities in Tipton in the West Midlands region of England.
Paulig manufactures snacks, spices, coffee and Tex Mex products, both branded and private label. The company posted revenue last year of €1.2bn ($1.3bn).
Rolf Ladau, Paulig’s CEO, said: “We have collaborated with Panesar Foods for 17 years and we are very pleased to welcome the company to Paulig.
“Today, our combined taste expertise and innovation skills unite around a shared ambition: to accelerate our international growth and expand our World Foods offerings with sauces, salsas, condiments, marinades and dips.”
Panesar Foods’ 308 employees will be retained, Paulig said, without revealing the financial terms of the transaction.
Like Paulig, the acquired company is family-owned and was set up in 1992. Panesar Foods is led by CEO Bill Panesar, accompanied by MD Jas Panesar, and is focused on the UK market.
The company offers its own namesake brand in a portfolio that includes cooking sauces, chutney and guacamole, and also serves as a co-packer.
“As Panesar Foods becomes part of Paulig, I am confident that our ambitions for international growth will be realised and the business will continue to thrive,” Bill Panesar said.
“We share a strong commitment to innovation and delivering high-quality, flavourful products, and I look forward to bringing even more delicious products to the market, together.”
Paulig serves around 70 countries but 49% of its 2023 revenue was generated in the Nordics.
The business turned around profits last year, delivering €89.1m compared to a €19.9m loss in the previous 12 months. Comparable EBITDA rose 57% to €137.2m.
“Paulig’s growth was driven by both the branded business and customer brands. With the economic downturn consumers make more cost-conscious choices, and conditions in 2023 were particularly favourable for private-label products,” Ladau commented.
“Paulig’s revenue from the customer brands business grew and represents about 40% of the company’s total revenue today.”
