Odlums owner Valeo buys Kettle Chips for €73m

Valeo Foods - the owner of leading Irish consumer brands Batchelors, Odlums, Jacob's biscuits, and Kelkin - has acquired the European business of Kettle Foods from the Campbell Soup Company for around £66m (€73m).

The deal, which still requires regulatory and employee approval, will cover Kettle's business across Europe and the Middle-East.

It will see Valeo gain control of snack brands such as Kettle Chips, Go Pure vegetable crisps and Metcalfe's Skinny Popcorn through the purchase of Kettle Foods and Dutch-based sister company Yellow Chips.

Campbell's will continue to own the Kettle Foods business in the US and other markets apart from Europe and the Middle-East.

It marks Valeo's 12th acquisition since its establishment in 2010 when it formed via the merger of agri-group Origin Enterprises' consumer foods arm and Batchelors, which was owned by London-based private equity house CapVest Partners.

CapVest - founded and led by Irish financier Seamus Fitzpatrick - now owns Valeo through various funds having bought Origin's 32% share for around €87m four years ago.

Valeo - which also owns a number of sweets brands following UK and mainland European acquisitions - said the latest acquisition is consistent with its long-term goal of building "a dynamic international portfolio of attractive, resilient and popular food brands".

"The global snacking segment continues to grow and the proposed acquisition of Kettle Foods provides a great opportunity to further strengthen our expanding portfolio of international brands," said Valeo chief executive Seamus Kearney.

The Kettle acquisition will also boost Valeo's annual sales to nearly €1bn. The Irish-based company currently generates around €850m in sales, with Kettle set to add approximately €115m to that per year.

Valeo's latest available financial accounts show that more than 45% of its turnover is generated from Ireland, with nearly 30% coming from the UK and the remainder split between mainland Europe and global exports.

The Kettle business will add 500 staff to Valeo's already 3,000-strong workforce.