Valeo borrows € 1.2bn to finance the buyout of Capvest

Jacob’s Biscuits and Batchelors owner Valeo Foods plans to borrow some 1.2 million euros to finance the company’s takeover, according to information released over the weekend.

Boston-based Bain Capital, founded by former US presidential candidate Mitt Romney, supports the takeover of Valeo from current shareholder Capvest for 1.7 billion euros.

Reports released over the weekend said the food company was looking to borrow nearly € 1.2 billion to fund the deal.

Credit Suisse and RBC are offering investors two rounds of loans, a combined euro and pound sterling arrangement of approximately € 1 billion and sterling-denominated bonds of € 175 million, which have been pre-placed .

Valeo owns Jacob’s Biscuits, Batchelors and Odlums flours, as well as other products well known to Irish buyers.

The group was founded in 2010 when private equity group Capvest, led by Cavan man Seamus Fitzpatrick, bought Batchelors and Origin Foods.

Since then, it has acquired a series of other manufacturers, including Italian cookie maker Balconi, British Kettle Crisps, Rowse Honey and Fox’s Glacier Mints.

It has 85 brands in total. The company posted sales of around 1.2 billion euros last year, according to reports.

Capvest announced its intention to sell Valeo at the start of the year. Bain emerged as the most likely backer for a deal last month.

The sale is taking place in a market awash with private equity cash after a pause on the backs of Covid-19 and ultra-low interest rates.

Covid-19 has been beneficial for businesses such as Valeo, as closed restaurants meant people were eating more at home.

The company made no comment over the weekend.

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