Origin and CapVest team up to purchase Batchelors
THE owner of Odlums Flour is teaming up with a private equity firm to buy the maker of Batchelors beans.
Origin Enterprises and private equity firm CapVest, which owns Dublin's Mater Private Hospital, are to buy Batchelors in a deal which will create a new company called Valeo Foods and allow Origin to spin off their consumer goods division.
Under the terms of the deal, Origin will take a 45pc stake in Valeo, with CapVest owning the majority stake in the company.
Batchelors and Origins consumer brands, which include Roma Pasta and Shamrock Foods as well as Odlums, will come under the new Valeo umbrella.
A spokesman for CapVest refused to comment on the terms of the deal although when Batchelors' current owners bought the company during the boom it was valued at €62m.
There has been no suggestion that any jobs will be affected following the deal.
"We have always liked the food sector as we believe it is fundamentally non-discretionary in terms of demand, while simultaneously offering real potential for consolidation and growth," said Peadar Kearney, the head of Origin foods and chief executive of Valeo.
CapVest is headed by the Cavan businessman Seamus Fitzpatrick and is thought to be in the market for further acquisitions.
The company is believed to have around €200m available for future deals.