Valeo Foods has bought Health food specialist Kelkin and food and drink firm Robert Roberts for a total of €60m.
The acquisition, from Dublin-listed investment group DCC, is the second significant deal in recent months for Valeo, which acquired Rowse Honey from Wellness in April.
Robert Roberts and Kelkin operate principally in Ireland, and in the year to 31 March 2014 generated combined revenue of €120m (£101m) and had combined operating profit of €7.3m.
The businesses previously accounted for 80% of DCC’s food division, and a City source said they would be better positioned to grow under a food-focused company like Valeo.
Kelkin specialises in healthy food, vitamins and skin care, while Robert Roberts supplies own-brand and agency products including Ocean Spray.
“Kelkin is by far the leading health and wellness brand in Ireland and is now increasingly found on shelves in the UK and Tesco, particularly its gluten-free range,” the City source added.
Valeo’s food and drink portfolio includes Jacob’s biscuits, Shamrock baking ingredients, Batchelors canned goods and Chef condiments.