by Lynda Kiernan
Canadian private equity firm Ardenton Capital announced it has taken its first steps into the UK food sector, making a strategic investment in specialty food maker Food Innovations Baking Group (Food Innovations).
Financial terms of the deal were not disclosed, however, the structure of the deal incorporates the acquisition of Doric Cake Crafts, Doric Crimped, Doric FPD, and Food Innovations. Through the deal, Food Innovations founders Peter and Robert Ward will be exiting the baking products business, but plan to retain ownership of Doric Anderton.
Founded in 2004, Food Innovations has seen rapid growth via acquisitions during its existence to-date, having five sites and 250 employees, and posting revenue of £34 million (US$43 million) per year.
“Food Innovations is an impressive business which is really innovating within its sector,” said Michael Bradbury, director of Ardenton UK who led the deal along with support from Hames Worrall and Jonny Nixon. “Over the last few years the company has delivered strong organic growth while successfully integrating complementary acquisitions and we confidently back the management team to push the business through its next phase of growth.”
Ardenton, which focuses on majority stake investments in businesses that have strong owners and management teams looking for a path to long-term, sustainable growth, says that one key strategy moving forward with Food Innovations will be product development.
Another will be to pursue organic growth through complementary acquisitions, and plans to work closely with the company’s management team comprised of Bruce Murray, group finance director, Simon Woodhouse, group operations director, and Robert Brace, sales & commercial director to make it a reality.
“Ardenton shared our vision for the future expansion of the group,” said Robert Brace. “Their company ethos and personal approach made them the ideal choice. We are confident that their wealth of experience and ambition match our own. The partnership with Ardenton will enable the company to pursue new opportunities for innovation, acquisition and growth.”
The UK represents the tenth largest bakery goods market in the world, and fourth largest in the EU with a market share of 12.8 percent, according to Agriculture and Agri-Food Canada. Sales topped US$15.1 billion in 2016, and expectations are that sales will continue to steadily grow. Between 2012 and 2016 the category experienced a CAGR of 4.14 percent, and with the popularity of American style coffee shop chains such as Starbucks, is expected to continue to see such continued growth through 2021.
“Ardenton believes that Food Innovations is the ideal partner for its first step into the UK food sector, a key strategic vertical for the business,” said Bradbury. “Going forward, the team will continue to consider other attractive acquisition opportunities in this space.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com
The post Canada’s Ardenton Capital Makes First Investment in UK Food Sector appeared first on Global AgInvesting.