Irish food and agricultural group Origin Enterprises has decided to spin off its consumer food business in the country to focus on farming.
Origin, in which Switzerland-based bakery group ARYZTA owns a 71% stake, has teamed up with private-equity firm CapVest to create Valeo Foods Group, a business that will own brands like Odlums and Shamrock baking ingredients.
Origin will take a 45% stake in Valeo, while private-equity firm CapVest will control the rest of the business.
Valeo, meanwhile, has agreed to buy Irish food business Batchelors, a maker of brands including Batchelors baked beans, Erin cooking sauces and Sqeez juice drinks.
The deals remain subject to conditions including competition clearance but Origin CEO Tom O’Mahony said the moves would allow the company to concentrate on agriculture.
“The creation of Valeo marks a significant repositioning of the Origin Group and facilitates a sharpening of our strategic focus as we prioritise the development of the group’s agri-services platform,” O’Mahony said.
Origin will receive EUR26m (US$33.1m) in cash and a deferred consideration of EUR35m from the creation of Valeo, which has a pro-forma turnover of EUR200m.