Crunch time: Kettle Foods poised for takeover by Irish group Valeo
The owner of high-end crisp brand Kettle Chips is set to be swallowed up by Irish food group Valeo as the two companies near an agreement in takeover talks.
Valeo Foods, which owns brands including Rowse Honey and Barratt confectionery, is in advanced talks to buy Kettle Foods’s operations in the UK and Ireland, Sky News reported.
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The deal, which could be reached this week, is expected to be worth more than £50m.
In addition to its flagship posh crisps, Kettle also owns Metcalfe’s Skinny Popcorn and Yellow Chips.
If the deal is completed, Kettle Foods would form the basis of a new snacking division at Valeo, according to the report.
The Irish company is owned by funds managed by Capvest, a private equity firm with a string of holdings in major branded consumer businesses.
Kettle’s UK and Ireland business was put up for sale last year by owner Campbell Soup following pressure from activist investor Third Point.
The potential takeover is not believed to include Kettle’s assets in the US or in other markets outside the UK and Ireland.
The merger would be the latest in a spate of recent acquisitions in the sector, as firms look to cash in on growing demand for healthier snacks.
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Rival upmarket crisp brands Tyrrell’s and Piper have recently been bought out by Instersnack and Pepsico respectively.
Valeo has been contacted for comment.
Main image credit: Getty