UK- Swiss international consumer food manufacturer Hero Group, has sold its Hero UK which trades as Juvela to a London Stock Exchange-listed enterprise company, S-Ventures.
Juvela manufactures and distributes a range of branded gluten-free products which include high quality and tasty free-from range of bread, mixes, and pasta sold in the UK retail and pharmacy markets.
The company has been manufacturing gluten-free food for people diagnosed with coeliac disease for more than 25 years and is a prominent brand serving the UK coeliac community.
According to Hero Group, the divestment is part of the company’s long-term strategy to focus on its core categories, which include baby and toddler food, healthy snacks, and natural spreads.
S-Ventures has agreed to buy the facility at GBP8M (US$9.9M) and five million new ordinary shares in S-Ventures.
The five million shares to be issued to the Hero Group as part of the consideration will represent 3.8 percent of S-Ventures’ enlarged share capital and will make Hero group a new shareholder and partner in S-Ventures.
However, the two parties made an acquisition deal split as £6.5M (US$7.9M) on completion and £1.5M (US$1.8M) deferred plus 8 percent interest, payable in September 2023.
The net assets acquired by S-ventures during the acquisition deal amounted to £7.5M (US$9.1M).
As stated by Rob Versloot, CEO of Hero Group, “We are very pleased to have found an ideal home where Juvela can grow to its full potential alongside other similar companies”
S-Ventures believes that acquiring Juvela is very promising, with the potential for substantial future growth.
Scott Livingston, the founder, and CEO of S- Ventures, affirmed that the company is excited about acquiring Juvela as it brings a substantial drive-in growth and value to its shareholders.
S-Ventures added that the two companies have synergies in the existing brands more so due to the recent acquisitions in the health and wellness industry.
In September, S-Ventures acquired Frankfrurt-based Lizza, a company that supplies Low-carb doughs, and in February acquired the UK vegan snacks startup Livia, a manufacturer of natural, plant-based, indulgent, innovative, and healthy food treats for GBP355,000 (US$431,000).
Juvela also presents a significant growth opportunity for S-Ventures having grown at a compound annual growth rate of 6.7% between 2019 to 2021 £1.86B (US$2.3B), according to the UK Free from Grocery & Pharmacy Market report.
By 31 December 2021, Juvela had achieved a gross revenue of £8.8M (US$10.7M) and has continued to operate profitably this year with expected gross sales of £8.6M (US$10.5M).