German private equity firm, Deutsche Beteiligungs (DBAG) is looking to have a major presence in the European chilled convenience product market after agreeing to acquire Abbelen and Oscar Mayer through its top-up fund, DBAG Fund VII.
However, the acquisition prices were not disclosed by the concerned parties.
Both Abbelen and Oscar Mayer are family-owned food companies which will be acquired through management buyout.
DBAG board of management member Dr Rolf Scheffels said: “Creating a European market leader with leading national providers of fresh convenience food products is, in our opinion, an attractive entrepreneurial approach.
“The market for ready meals and snacks is rarely cyclical and is constantly growing at a high rate, and private labels are benefiting particularly strongly. We are investing in a very attractive segment of the food market.”
According to DBAG, Abbelen is among the major manufacturers of chilled meatballs and ready-made burgers in Germany with revenues of €140m.
With a meat processing plant in Tönisvorst, Abbelen sells most of its products under private-label brands to supermarket chains.
On the other hand, the UK-based Oscar Mayer manufactures ready meals and snacks from four factories, which are sold to leading grocery retailers and discounted stores. In the 2015/16 fiscal year, Oscar Mayer made revenues of €293m.
DBAG stated that it is aiming to further expand the product range of the two food companies and globalize the group’s distribution operations more strongly, with contribution to come from add-on acquisitions in the future.
Post acquisition, Abbelen and Oscar Mayer are planned to operate as autonomous entities, though they will come under the common umbrella of a joint management holding company.
The acquisitions will be subject to closing conditions including clearance from the cartel authorities.
