Listed consumer goods group Supreme has acquired plant-based supplier FoodIQ UK from administration for £175k to broaden its portfolio.
The group, which specialises in vaping, batteries, lighting and sports nutrition, has acquired the trade and assets of FoodIQ UK following the latter’s appointment of administrators in late December.
The deal provides Supreme with a “purpose-built, state-of-the-art, accredited, automated contract manufacturing facility” that opened only 18 months ago and cost almost £1.2m to build.
Supreme will keep the facility operational from its site near London, and expects the facility will increase Supreme’s wellness manufacturing capacity by around 40%.
CEO Sandy Chadha commented: “We are delighted to have completed this acquisition, which provides our fast-growing Sports Nutrition & Wellness division with the manufacturing capacity required to meet growing demand.
“We have used FoodIQ in the past to manage capacity requirements in our Sports Nutrition & Wellness division so are familiar with their capability.”
House broker Shore Capital commented: “We see this as a very attractive bolt-on acquisition that will add strategic and earnings value to shareholders in due course.
“The firm is ambitious to expand and to do so through broadening its portfolio with complementary categories and assortments.
“Hence the FoodIQ purchase, whilst modest in the big scheme of things and albeit seemingly highly attractive from an initial valuation point of view, also signals to us the shape of things to come and so a broader and larger growth company.”
The parent of the UK arm of FoodIQ is based in Finland and raised €13m in a round led by food tech-focused investor Nicoya, to create a one-stop shop for plant-based product development and production in the dairy alternative market.
FoodIQ opened its UK division in 2022 to specialise in sports nutrition and powder blending.
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