Lotus Bakeries, the Belgium-based biscuit maker, has bought a majority stake in Natural Balance Foods, the UK firm behind snack bar brands Nakd and Trek.
The deal, announced today (14 August) sees Lotus acquire 67% of the business for around GBP60m.
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Jan Boone, CEO of Lotus Bakeries, said: “As a group, Lotus Bakeries has traditionally focused mainly on the indulgent segment of biscuits and snacking. Additionally we recognize there is a growing global demand for healthy, unprocessed and tasty alternatives.
“The Nakd and Trek brands, which are complementary to our current product and brand portfolio, will ensure Lotus has the right product and brand offering for all consumers.”
US businessmen Jamie and Greg Combs set up Natural Balance Foods in 2004. The brothers will keep “most” of their shares and will continue to manage the company, Natural Balance Foods said.
In a statement, the brothers said the “strategic partnership” with Lotus would help their “dream of a wholefood revolution” where “natural, delicious and affordable snacks” would become mainstream products.
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By GlobalData“Today is an exciting and pivotal moment for the growth of wholefood snacking,” they said. “Lotus can assist significantly in international expansion, whilst supporting our passionate commitment to the principles and purpose of our company, brands and products.”
Lotus Bakeries said Natural Balance Foods had generated net sales of GBP20m for the year to the end of March. Sales are estimated to hit around GBP33m this year. Lotus Bakeries revealed it had paid a multiple of around 1.8 times the expected sales, giving Natural Balance Foods a price tag of GBP59.4m.
The deal follows growing speculation over the future ownership of Natural Balance Foods. Amid reports of multiple bids for the business, Natural Balance last week confirmed its shareholders were weighing up its options, without commenting on whether the company had received any offers.
Burton’s Biscuit Co., Kellogg and Hain Celestial were reported to have tabled bids for the business, although Lotus Bakeries had not featured in the early reports naming interested parties.
