Fairfax Financial acquired the stake in the value-added ingredients business from London-based private equity firm Exponent.
Exponent, alongside the founding Chantler family, purchased a stake in Meadow in 2018, and both retain a smaller share in the business following the sale. No financial details of the transaction were disclosed.
Partnered with food manufacturers around the world, Meadow boasts a team of experts in the dairy, confectionery and plant-based sectors.
The ingredients maker recently acquired sweet sauces maker Naked Foods and employs more than 500 people across BRC accredited sites in Peterborough, Holme-on-Spalding Moor, Dolgellau and Headcorn, as well as at its headquarters in Chester.
Meanwhile, Toronto-based Fairfax Financial is primarily engaged in property and casualty insurance and the associated investment management. The firm states that its approach to investment is informed by a long-term value-oriented philosophy.
Fairfax Financial a ‘perfect partner’ for Meadow
Chief executive at Meadow, Raj Tugnait, said of the deal: “To have caught the eye of an investor like Fairfax Financial is an excellent outcome for Meadow as they are the perfect partner for our future growth.
“We look forward to a long-term, sustainable partnership and continuing to deliver growth and opportunities for our customers, suppliers and colleagues.”
Meadow’s acquisition of Naked Foods earlier this month (August 2023), followed the purchase of decorations, topping and inclusions firm Nimbus Foods at the end of 2019 from ambient food group Valeo Foods.
Mark Taylor, partner at Exponent, described Meadow as a “trusted partner” to some of the biggest food and drink manufacturing firms in the world.
“Over the course of our partnership, the business has generated significant organic and inorganic growth, including four bolt-on acquisitions, and accelerated its shift into more value-added ingredients,” Taylor added.
In other news, Britvic has invested £22.5m in new technology at its London factory.