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Valeo to possibly eat up assets: Sky News
Posted on Tuesday, 13 August 2019 14:08
Valeo Foods Group is in discussions to acquire Kettle Foods’ UK and Ireland-based operations in a GBP 50.00 million or more deal which might take place in the upcoming days, Sky News reported.
Citing city sources close to the situation, the broadcaster noted the potential buyer has been in negotiations with the crisp manufacturer’s advisers for the last few weeks.
Valeo, which is owned by private equity firm Capvest, did not comment on the matter, but insiders told Sky News that a purchase might lead to a new snacking division for the company.
The acquisition would include brands such as Kettle Crisps, Metcalfe’s Skinny Popcorn and Yellow Chips, but no other assets outside of the UK and Ireland, the broadcaster observed.
Headquartered in Oregon, Kettle is an international manufacturer of potato chips, tortilla chips and nut butters, with operations spanning the UK and Europe, the Middle East and US.
The target is part of a group which was put up for sale this year by Campbell Group, as part of a series of divestments that included its biscuit company Tim Tam being bought by KKR for GBP 2.20 billion.
Its snack food brand Kelsen was also snapped up by Ferrero for USD 300.00 million.
Based in Dublin, Valeo is billed as one of Europe’s fastest growing consumer foods producers, selling over 600.00 million units a year through its manufacturing facilities in Ireland, the UK and continental Europe.
Valeo has annual sales of EUR 870.00 million and comprises snack brands such as Jacob’s, Fox’s and Barratt, as well as health and wellness businesses including Kelkin and Fruitfield.
Kettle is not the only crisp brand to hit the headlines in recent years; KP Snacks bought Tyrrells from the Hershey Company in May 2018 and PepsiCo agreed to acquire UK-based Pipers Crisps in May this year, both for an undisclosed sum.
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