Organic babyfood company Organix Brands is set to double in size by 2011 following its acquisition by Swiss food company Hero.
As part of the deal, Organix has secured funding to increase its product range from 55 to more than 100 in the next two-and-a-half years. It will also be focusing on new categories and older children so kids can "grow up with Organix".
Founder Lizzie Vann, who set up Organix in 1992, said she had been in talks with three other suitors leading up to the deal. "We reached a place where we needed long-term stability," she said. "It is scary when you talk to some of these business interested in buying you.
"But Hero is family-based and has made a commitment to continue the business as usual. We wanted to be sure the business wasn't going to be flipped or go down the private equity route."
Organix's profits soared 58% to £1.6m in the year to June 2007, with a 38% increase in turnover to £18.8m. Profits are forecast to hit £2m with sales of £25m in 2008.
Hero, which is majority owned by the founder of Dr Oetker, has worked with Organix for the past 10 years as a supplier.
The company has operations across the world, focusing on fruit, nutrition, cereals and decoration. It also owns Signature Brands, a parent company to Betty Crocker.
Vann will take on a new role of president for the next three years. She will also act as a consultant to Organix but will have no hand in the day-to-day hand running of the business.
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