Valeo Foods has bolstered its confectionery business with the acquisition of German marzipan and chocolate producer Schluckwerder.
The CapVest-owned food group has acquired Schluckwerder, maker of the 175-year-old ‘Lübecker marzipan’ brands Erasmi and Carstens, from mid-market private equity firm Novum Capital.
Schluckwerder marzipan products are “produced using higher quality standards than other marzipan-based products” and have been distinguished by EU protected geographic designation status since 1996.
The company also produces nougat, chocolate rings, fondant, crocante and praline treats popular with consumers across Germany. Additionally, Schluckwerder operates a private label business and counts leading German and international retailers among its customers.
Over 25% of Schluckwerder’s products are sold outside Germany.
Schluckwerder operates three production facilities in Lübeck and Adendorf and has 480 employees, bringing Valeo Foods’ total workforce to approximately 4,500.
“Schluckwerder is a great business that is supported by an extensive team of excellent people and it significantly strengthens our presence in Continental Europe,” said Seamus Kearney, group CEO, Valeo Foods.
“Its purchase represents the continued realisation of our strategy of building a major international food business where we see further attractive opportunities for expansion.
“Schluckwerder is our first German acquisition and we expect to further grow our European business unit alongside our existing significant platforms in the UK and Ireland. Valeo Foods will continue to focus on targets in categories with stable demand characteristics where we can apply our team’s deep experience and expertise to drive sustainable growth.”
The deal, which follows Valeo’s acquisition of tortilla chips maker It’s All Good in the week before Christmas, boosts the group’s annualised revenues to €1.2bn, consolidating its position as a “major international food business” across its three business units in the UK, Continental Europe and Ireland.
Following the purchase of Schluckwerder, revenues at Valeo Foods’ European business unit will increase to approximately €283m.
Its UK business unit has revenues of over €583m with a further €319m generated in Ireland.
Valeo’s growing snacking division includes Kettle Foods, Tangerine Confectionery and Big Bear Confectionery as well as new acquisitions It’s All Good and now Schluckwerder.