Leading national law firm Mills & Reeve has advised the management team of The Weetabix Food Company on a major investment from Bright Food, one of China’s leading food groups with global revenues of more than £12 billion.
Bright Food has acquired 60 per cent of the share capital of Weetabix for an enterprise value of £1.2 billion. The remaining 40 per cent of shares will continue to be held by management and Lion Capital, the private equity firm which acquired Weetabix in 2004.
Giles Turrell, CEO of Weetabix Food Company, said: “We are a highly successful company, the second largest cereal manufacturer in the UK, with an exceptional portfolio of brands which makes us attractive to investors.
“While the company’s focus has been on reinforcing and building on our leading position in the UK, I believe there are also substantial opportunities to further grow the business internationally, in North America, Asia and beyond. We are very excited about the future prospects for Weetabix under the guidance and support of shareholders who bring a strong track record of success and the complementary skills and expertise to execute our strategy and vision for the business.”
Turrell added: “The support, guidance and counsel received from Anthony McGurk and his team at Mills & Reeve was outstanding and ensured the timely completion of this transaction. We would be delighted to work with Anthony and his team in the future."
Anthony McGurk, Mills & Reeve partner, commented: “This deal will resonate around the world due to the high consumer loyalty towards Weetabix. In addition to the iconic Weetabix product, it also exports brands such as Alpen to more than 80 countries. We very much enjoyed working with Giles and his management team on this exciting and high profile transaction.”
For the transaction, Linklaters acted for Bright Food and Weil Gotshal acted for Lion Capital.
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