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Pastry maker Addo Food Group confirms sale to LDC

Matt Atherton

By Matt Atherton+

20-Apr-2017
Last updated on 21-Apr-2017 at 16:17 GMT2017-04-21T16:17:50Z

Addo Food Group has been sold to LDC for a reported £100M
Addo Food Group has been sold to LDC for a reported £100M

Addo Food Group has been sold to private investor Lloyds Development Capital (LDC), following widespread reports of an imminent deal.

LDC invested in Addo – owner of the Pork Farms brand – to support its growth strategy, it said, including more product development, expansion into new markets and potential acquisitions. The private equity firm sealed the deal for an undisclosed fee, which industry experts estimated to be about £100M.

Addo group md Chris Peters said: “We are very excited about our partnership with LDC, to help us further unlock the potential we see in the market.

“LDC has really bought into our vision and plan, and the whole Addo management team is looking forward to working with our customers, our employees and our investment partners to deliver the next exciting phase of our growth story over the coming months and years.”

Joining the Addo board

The existing management team at Addo will remain in their positions, led by Peters, LDC confirmed. LDC head of new business Andy Grove, and LDC investment director Victoria Marcer will join the Addo board as non-executive directors, it added.

Grove said: “The UK’s chilled savoury pastry market continues to grow at a steady pace, driven largely by consumer loyalty to much-loved brands and indulgent products. Over its long trading history, Addo has continually demonstrated its ability to evolve and adapt, maintaining its market leading position through a clear focus on product innovation and high quality product ranges.

“In Addo, we’re backing a management team with strength in-depth, led by Chris Peters. We look forward to working alongside them to support the business’s next phase of growth and expansion.”

LDC and Addo management were advised by Catalyst Corporate Finance on the deal.

Proud of the business it built

The former owner of Addo, Vision Capital, was advised on the transaction by financial advisory firms Houlihan Lokey, KPMG and Macfarlanes. Vision Capital said it was proud of the business it built with Peters, and wished the food manufacturer and its new owner continued success.

An industry expert revealed to FoodManufacture.co.uk this week that a deal between Addo and LDC was “certain”. It claimed the private investor backed the management team in a £100M deal.

The maker of sausage rolls, pork pies and pasties supplied about 256M products a year, for its branded and own-­label ranges.

Meanwhile, last month Addo’s Riverside Bakery revealed plans to axe 44 jobs , to secure the company’s long­-term future.

 

Addo Food Group sold to LDC – at a glance
  • Addo sold in reported £100M deal
  • LDC to back product development, expansion into new markets and acquisitions
  • Management to remain in their positions