Bayn Group, which has snapped up a number of businesses offering reduced-sugar foods in the last year, has continued its M&A push.
The Sweden-based company has announced deals to buy five companies based in its home market: reduced-sugar confectioner Grahns Konfektyr; spices supplier Kryddhuset i Ljung; and three sports-nutrition firms, Performance R Us, Nordic Sports Nutrition and Viterna.
Bayn said it is paying a total of SEK78.5m (US$9.3m) for the businesses, with around SEK41.2m put down in cash and the rest in newly-issued shares in its own business. In connection with the transactions, Bayn is also buying two properties to be used for production for SEK36.9m.
Combined, the companies’ estimated annual revenues and adjusted EBITDA are SEK309.3m and SEK29.2m, respectively, Bayn said.
The publicly-listed Bayn announced a series of acquisitions in food in 2020, including that of Golden Athlete, a Swedish manufacturer of sugar and calorie-free sauces and dressings.
Last month, Bayn made a sizeable acquisition, buying Swedish health-and-beauty business The Humble Co. for SEK809m. Bayn is in the process of changing its name to Humble Group.
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Announcing the latest batch of acquisitions, Simon Petrén, Bayn’s CEO, said: “We have had a good start in the first half of 2021 and, with the previous acquisition of The Humble Co., we have taken the step towards becoming a significantly larger player in the FMCG products of the future. Our decentralised governance model and the efficient structural platform that we built in 2020, means that we will be able to continue to grow rapidly, where we have a management that manages to run several high-quality acquisition processes in parallel.”
Grahns Konfektyr sells sugar-free and sugar-reduced sweets. Bayn is buying the firm’s manufacturing sites and said it “sees great opportunities” through the acquisition to boost the production of Tweek and Pändy, two reduced-sugar candy brands it already owns.
Kryddhuset i Ljung AB manufactures spices and spice mixtures and the acquisition of that business also includes a production site.
Performance R Us, Nordic Sports Nutrition and Viterna AB are three sports-nutrition companies with their own brands and “wide distribution” in sports and specialist retail in the Nordic region, Bayn said. Each of the three companies will be added to Bayn’s existing Golden Athlete business to “form a stronger business leg in the fast-growing segment”.
Bayn added all the firms being acquired will “add significant sales growth and improved profitability” for its own business “at a consolidated EBITDA level”.
The founders of the companies have agreed to continue running the businesses for at least three years after the completion of the transactions.
In 2020, Bayn generated net sales of SEK31.8m. On a pro-forma basis, if the acquisitions Bayn made during the year were part of the business for all of 2020, net sales were SEK433.4m.
The company’s adjusted EBITDA was a loss of SEK8.9m, a 32% “improvement” on 2019, Bayn said. On a pro-forma basis, Bayn booked an adjusted EBITDA of SEK50.4m.