Equity investment firm LDC has backed the secondary buyout of pork pie and sausage roll producer Addo Food Group for an undisclosed sum.
In a statement announcing the buyout, LDC said it has “invested to support Addo’s growth strategy, which will include further investment in product innovation, expansion into new markets through organic growth and potential acquisitions in adjacent markets”.
Addo employs more than 2,500 people and operates across six UK sites in Nottingham, Market Drayton, Spalding, Poole and Shaftesbury. It produces more than 287 million packs of chilled savoury pastry products every year and manufactures a range of own-brand and branded products, including sausage rolls, hot pies, slices, pork pies, Scotch egg products and quiches, which it supplies to UK retailers, including all the major supermarkets.
It was acquired by Vision Capital from Northern Foods in 2007 and traded as Pork Farms Group until 2015, when it changed its name to Addo Food Group. In 2014, the company completed the acquisition of Kerry Foods’ £100m chilled savoury pastry operations.
Addo will continue to be led by its existing management team, headed up by group managing director Chris Peters.
Peters said: “We are very excited about our partnership with LDC, to help us further unlock the potential we see in the market.
“LDC has really bought into our vision and plan, and the whole Addo management team is looking forward to working with our customers, our employees and our investment partners to deliver the next exciting phase of our growth story over the coming months and years.”
The transaction was led by Andy Grove, LDC head of new business, alongside John Green, LDC head of East Midlands, and Victoria Marcer, LDC investment director.
Paul Monk will also join Addo as non-executive chairman. He is currently non-executive chairman at Seabrook Crisps and has previous experience with Mars, Golden Wonder, Finsbury Foods, Quorn and Burton’s Biscuit Co.
Andy Grove, head of new business at LDC, said: “The UK’s chilled savoury pastry market continues to grow at a steady pace, driven largely by consumer loyalty to much-loved brands and indulgent products. Over its long trading history, Addo has continually demonstrated its ability to evolve and adapt, maintaining its market-leading position through a clear focus on product innovation and high-quality product ranges.
“In Addo, we’re backing a management team with strength in-depth, led by Chris Peters. We look forward to working alongside them to support the business’ next phase of growth and expansion.”
Oliver Jones at Vision Capital added: “With Addo doubling in size since our acquisition, Vision Capital is proud of the business we have built in a highly collaborative relationship with Chris and his team. We wish Addo and its new investors continued success.”