Acquisition of Marlow Foods (Quorn) by Exponent Private Equity

DATE
January 2011

TRANSACTION TYPE
Private Equity Acquisition

VALUE
£205 Million

SECTOR
Food & Beverage

Spayne Lindsay & Co. LLP advises Exponent Private Equity and Intermediate Capital Group on the acquisition of Marlow Foods.

Premier Foods announced on the 24th January 2011 the sale of its Meat-free business, Marlow Foods to Exponent Private Equity and Intermediate Capital Group for £205 million on a debt-free, cash-free basis.

The Meat-free business is the UK market leader in the meat alternative segment selling chilled and frozen products under the Quorn and Cauldron brands. Quorn offers a wide range of meat alternative products made from mycoprotein, including mince, burgers, sausages, escalopes, cottage pies, lasagne and snacking products such as picnic eggs. Cauldron is the UK’s No.1 brand in tofu and also produces a range of non-tofu products including falafels, vegetarian sausages and ready meals. Together, Quorn and Cauldron are in a complementary position to address the full spectrum of protein demand among vegetarians and non-vegetarian healthy eaters and meat reducers.

Exponent was founded in 2004 by a long established team to invest in UK mid-market private equity opportunities. Their initial £400m Fund and subsequent £800m Fund have secured commitments from a broad range of the world’s most experienced institutional investors. Exponent seeks to take majority ownership positions in market-leading UKbased businesses in the size range £100-350m, across a range of sectors.

Spayne Lindsay is delighted to have introduced the deal to Exponent and advised them on the acquisition of Marlow Foods.

The transaction is conditional upon the consent from both Premier Foods’ lenders and shareholders with completion expected in early March.