Dairy businesses are leading the charge as the sale of premium desserts company Gü enters its second round.
Yoplait and Noble Foods owner of chilled dessert brand Serious Desserts are reportedly among the second-stage bidders, as is New Covent Garden owner Daniels Foods. Confectionery giants Mars and Nestlé gave early expressions of interest but are not believed to have remained in the running.
"Given the low level of M&A activity in this market, Gü still has a good deal of interest in its second stage," said one City source. "In many ways, Gü is an excellent fit for branded dairy players as they already have the chilled supply chains and facilities needed to generate good synergies. However, there are still a couple of private equity houses bidding."
Langholm Capital, which in July underlined its commitment to food and drink when it appointed former Marks & Spencer head of food Steven Esom to oversee its fmcg operations, is thought to be one of the interested parties.
Gü, best known for its chocolate puddings and soufflés, was offered for sale earlier this year by founder James Averdieck. The company is said to be looking for between £30m and £40m a hefty multiple of its £22.5m sales.
"It's certainly pretty ambitious to be looking for a multiple of sales during a recession," said one M&A broker. "But it is possible: Innocent managed a valuation on exactly this basis earlier in the year."
Gü was most likely to get a good price from a trade buyer who could immediately take advantage of cost synergies and solid economies of scale to recoup their investment, he said.
"Offers from private equity are likely to be lower, but Gü does seem to be looking for a corporate buyer," he added.
Gü has expanded its portfolio to try and stay resilient as retailers give less shelf space to premium brands in the downturn. Earlier this year it launched ambient snack range Gü Naughties and expanded its £1.99 price point offer.
Yoplait and Noble Foods owner of chilled dessert brand Serious Desserts are reportedly among the second-stage bidders, as is New Covent Garden owner Daniels Foods. Confectionery giants Mars and Nestlé gave early expressions of interest but are not believed to have remained in the running.
"Given the low level of M&A activity in this market, Gü still has a good deal of interest in its second stage," said one City source. "In many ways, Gü is an excellent fit for branded dairy players as they already have the chilled supply chains and facilities needed to generate good synergies. However, there are still a couple of private equity houses bidding."
Langholm Capital, which in July underlined its commitment to food and drink when it appointed former Marks & Spencer head of food Steven Esom to oversee its fmcg operations, is thought to be one of the interested parties.
Gü, best known for its chocolate puddings and soufflés, was offered for sale earlier this year by founder James Averdieck. The company is said to be looking for between £30m and £40m a hefty multiple of its £22.5m sales.
"It's certainly pretty ambitious to be looking for a multiple of sales during a recession," said one M&A broker. "But it is possible: Innocent managed a valuation on exactly this basis earlier in the year."
Gü was most likely to get a good price from a trade buyer who could immediately take advantage of cost synergies and solid economies of scale to recoup their investment, he said.
"Offers from private equity are likely to be lower, but Gü does seem to be looking for a corporate buyer," he added.
Gü has expanded its portfolio to try and stay resilient as retailers give less shelf space to premium brands in the downturn. Earlier this year it launched ambient snack range Gü Naughties and expanded its £1.99 price point offer.
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