Indian snack food brand Cofresh has been acquired by recently launched ethnic foods group Vibrant Foods in a multi-million pound deal.
The deal, for an undisclosed sum, adds the Leicester snack manufacturer to a growing portfolio at Vibrant.
It was launched this year by private equity player Exponent to consolidate brands in the Asian and free-from markets.
READ MORE: {}
It already includes Asian food suppliers TRS Foods and East End Foods, and its businesses had combined revenues of £113 million in 2019.
Leicester-based Cofresh has expanded production of its healthier snack ranges in recent years, including its Eat Real brand, on the back of years of success for its established snacks such as Bombay and balti mixes, chilli and lemon grills and poppadum curls.
Its products are sold in supermarkets and shops around the 海角视频.
Cofresh was launched in 1974 and managing director Priyesh Patel is the second generation of his family to be involved. The Patels are taking a minority stake in the new parent company.
He said: “Becoming part of Vibrant Foods is opening up an exciting new chapter in our history.
Most Read
“There are tremendous growth opportunities for our sector, as popularity for both ethnic and healthy snacking products continues to grow.
“Our products are well-established in both markets, thanks to the tireless work of our employees and founders, whom I’d like to thank for their support and commitment to excellent customer experience, alongside our global suppliers and customers in the 海角视频 and abroad.
“Being part of a dynamic food group will allow us to accelerate our growth trajectory, maintaining and building our market-leading product offering, and helping us penetrate new markets and distribution channels.”
Cofresh turned over £44.4 million last calendar year compared to £34.5 million the year before, with pre-tax profits up more than £2 million to almost £5.7 million.
The business, which has invested £20 million in the new factory in Nuneaton, plans to reach a turnover of £100 million in the next three-to-four years.
Vibrant, meanwhile, has been investing to help it become one of the leading producers and distributors of South Asian ethnic foods in the 海角视频 and Europe.
It hopes that synergies between Cofresh and other businesses in the Vibrant Foods stable will help the Leicester business focus on improving and expanding its offering.
Don’t miss
The Eat Real brand, launched in 2014, has grown around its plant-based snacks that are free from 14 declarable allergens and are suitable for vegan, kosher and halal diets.
It is said to be one of the 海角视频’s fastest-growing healthier snacking brands, and will be used as an anchor to drive the distribution of Vibrant Foods’ other products to the mainstream market.
Vibrant Foods chairman Rohit Samani said: “We are very pleased to welcome Cofresh Snack Foods to Vibrant Foods.
“Its broad range of authentic and high-quality snacks complements our existing product offering of South Asian staples, and further cements our position as one of the leading South Asian foods producer in Europe.
“The Eat Real brand provides us with a bridgehead into a customer base of health-conscious mainstream consumers, for whom our broad range of pulses is an ideal source of plant-based protein.”
Simon Davidson, partner at Exponent, said: “The underlying fundamentals for the broader free-from category are very positive, and snacks are the largest contributor to this sector.
“Bagged snacks, in particular, have been growing strongly, and as such Eat Real – the number one player - is positioning us in an exciting segment of the market.
“We look forward to working with Cofresh Snack Foods and Vibrant Foods’ management teams to realise the full potential of both brands.”
Fortus business advisors and accountants, which has offices around the 海角视频, advised Cofresh on the sale.
Its team was led by Sanjay Khullar from the Leicester office who has worked with Cofresh for more than 20 years, advising the Patel family on accountancy, tax and corporate finance matters.
Shakespeare Martineau advised the Patel family on the legal and corporate aspects of the deal.
Sanjay Khullar said: “This has been a large and complex transaction, made even harder by Covid lockdown.
“It’s a great deal for the Patel family and Vibrant Foods are getting a fantastic business to help build their new brand.
“The Midlands remains the home to many quality businesses and this sale is tangible evidence that businesses with strong brands and good management are still in high demand in the area.”
Roy Botterill, corporate partner and Leicester office head at law firm, Shakespeare Martineau, said: “Cofresh brands are a familiar sight on supermarket shelves across the country and to see a deal of this magnitude complete – against the backdrop of Covid-19 – is fantastic.
“It just goes to show that there are still real opportunities, across the East Midlands marketplace and beyond, for innovative, successful brands to secure investment and find buyers.
"Cofresh and its two brands were a strong proposition for any buyer and we look forward to seeing one of Leicester’s most prominent businesses continuing to grow and thrive.”