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Acquisition in Baby Food and adjacent children’s food categories: Europe & India

Indicative target profile:

  • Revenue range: EUR 8–30 million
  • Geography: Europe (preference for Eastern Europe) and India
  • Activity: production and/or commercialization of baby food, children’s food products or adjacent value-added food categories
  • Scope: targets do not need to be exclusively focused on baby food, but should have a clear strategic fit with children’s nutrition, early-age consumption or child-oriented snacking
  • Preferred categories: baby food, pouches, purées, children’s snacks, extruded products, biscuits and other food formats with relevance to children’s nutrition or snacking
  • Transaction type: full or majority acquisitions preferred

The buyer has a long-term industrial approach and is looking for companies with strong operational capabilities and potential to become part of an international growth platform in baby food, children’s nutrition and adjacent value-added food categories.

Buy Side Lead in Food Industry

We are currently preparing to pitch for buy-side mandates from two Turkish food manufacturing companies that are actively seeking acquisition opportunities in Europe.

The target universe primarily includes manufacturing companies operating in the following sub-sectors: snacks, dried fruits, chocolate, biscuits, ice cream, frozen food, healthy food, spices and sauces, tomato paste, pickles, canned and preserved food products.

The target companies are expected to generate annual revenues of over EUR 10 million and maintain positive EBITDA. The prospective clients are seeking to acquire a majority stake, up to 100% of the shares, with flexibility for the existing shareholders to pursue a gradual exit structure.

The clients’ focus is strictly on food manufacturing businesses. Accordingly, distribution companies and dairy product manufacturers are outside the scope of interest.

Delenco Foods

We’re pleased to have supported family-run premium sausage manufacturer, Delenco Foods, on its sale to a private equity-backed food manufacturing group.

Based in Leyton, Delenco Foods is a third-generation family business that was founded in 1963. Its 76-strong team produces high-quality sausages for a wide range of hospitality and leisure operators including restaurants, hotels and cruise liners, using meat sourced from sustainable and ethical farms across the UK and EU.

It has now been acquired by Red Sky Food Group, a company that was established earlier this year with the support of private equity investors, Literacy Capital.

Our Corporate Finance team acted as the sell-side advisers on this deal. We managed all stages of the transaction, developing the financial model, supporting negotiations and coordinating due diligence, allowing the deal to reach a positive conclusion.

The deal will allow Red Sky Food Group to further grow its capabilities within the food manufacturing sector, having acquired welsh meat manufacturer Langford’s earlier this year. Meanwhile Delenco Foods will benefit from increased resources and operational synergies now that it’s part of this wider portfolio.

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