Raisio sells confectionery business to Valeo Foods Group
Finish food group Raisio has agreed to sell its confectionery business, which includes the Poppets and Fox’s brands, to Valeo Foods Group in a bid to focus on healthy foods.
The divested confectionery operations include Raisio’s six production plants in the UK and Czech Republic and its brands, which also include Just and Pedro. They have combined annual sales of around €100 million and employ over 1,000 people.
In addition to the consumer brands, the businesses have significant and growing private label, contract manufacturing and food ingredient operations.
In 2016, net sales for Raisio’s confectionery business totalled €100 million. It has some 1,000 employees who will be transferred to Valeo Foods under the terms of the agreement.
“The divestment of the confectionery business is an important strategic step for Raisio towards a responsible forerunner focusing on healthy foods,” says Raisio group president and CEO Pekka Kuusniemi. “Together with our already strong balance sheet, the proceeds from the deal enable extensive acquisitions that strategically fit our core business.”
Valeo Foods portfolio of brands include Balconi, Rowse and Jacob’s. The company has seven food manufacturing facilities across Ireland, the UK and mainland Europe which currently produce over six million units a year. Over 70% of Valeo Foods production is in-house, with this set to increase further following the transaction.
Valeo Foods CEO Seamus Kearney adds, “The acquisition of these food businesses is consistent with Valeo Foods’ strategic focus and we are very excited about the opportunities for growth. We look forward to working with our new colleagues as we pursue our ambitious plans for our high performing and expanding international portfolio of favourite food brands.
“We are committed to expanding Valeo Foods through further organic growth and strategic acquisitions as we continue to build our footprint and presence in Europe and across the rest of the world.”
The deal is expected to close by the end of the year.