Dairy group Meadow Foods has secured strategic investment from private equity firm Exponent to drive its expansion.
Exponent has acquired the full shareholding previously owned by fellow PE firm Paine Schwartz Partners, which invested in the food industry supplier in 2016.
The investment from Exponent’s £1bn third fund, for an undisclosed amount, is aimed to facilitate Meadow Foods’ expansion through organic growth and acquisitions.
Since Paine Schwartz Partners investment, Meadow Foods has made strategic acquisitions in Roil Foods Limited and Fayrefield Liquids.
It has also made significant investments into manufacturing facilities and new product development, the company added.
Meadow Foods handles more than 650 million litres of milk each year direct from over 650 farmer suppliers.
“This investment marks another step in the growth trajectory of Meadow Foods,” commented chief executive Mark Chantler.
“Exponent and the management team have a clear vision for what we want to achieve with the company and we’re excited to get on and deliver that for the benefit of all the company’s stakeholders, suppliers and business partners.”
Oliver Bower, partner at Exponent, added: “Meadow Foods has matured as a business significantly in recent years and we believe the business is extremely well placed for continued growth.
“The core fundamentals of a strong management team, good customer relationships and a strong producer base make the business the success it is. We are very excited by this opportunity and look forward to executing the strategy for continued growth.”
Meadow Foods was advised by Houlihan Lokey, RPC and KPMG on the investment. Rabobank provided M&A advice on the transaction to Exponent Private Equity.