Information on the Target

Van Geloven B.V., based in Tilburg, is a prominent supplier of frozen convenience snacks and foods, featuring a diverse portfolio of brands. This includes the highly regarded Mora brand, which stands as the leading snack brand in the Benelux region. Additionally, Van Geloven offers artisanal products through 'the Bourgondiër', specializes in satay with Hebro, and provides foodservice specialty brands like Ad van Geloven, van Lieshout & Welten. The company also engages in private label contracts with key retail and foodservice clients.

Van Geloven has established itself as a market leader by responding effectively to consumer needs, supporting both retail and out-of-home market segments. The company focuses on delivering high-quality products and creating innovative snacks tailored to diverse consumer tastes and preparation methods. Notably, the Mora brand has experienced 34% growth in retail sales since 2010, which is attributed to successful innovations in appetizers and oven-ready products. In 2015, Van Geloven posted sales of €197 million.

Industry Overview in the Netherlands

The frozen food industry in the Netherlands has experienced steady growth over the past few years, driven by increasing consumer demand for convenient and high-quality meal options. As households become busier, frozen foods have gained popularity due to their long shelf-life and ease of preparation. Additionally, the trend towards healthier frozen food options has created new opportunities for innovation and growth within this sector.

Moreover, the Benelux region, particularly the Netherlands, is considered a significant market for frozen snacks and convenience foods. The rise of food delivery services and an increased focus on outdoor dining experiences have also contributed to the expansion of this industry. Companies are continuously investing in product development to cater to evolving consumer preferences, including the demand for organic and sustainably sourced ingredients.

In recent years, there has been a noticeable shift towards healthier eating habits, leading to a growing market for nutritious frozen snack options. Industry players are focusing on cleaner labels and transparency in ingredient sourcing to stay competitive. The Dutch frozen food market is projected to expand further, providing ample opportunities for brands like Van Geloven to innovate and capture new market segments.

The Rationale Behind the Deal

The agreement between McCain Foods and TowerBrook Capital Partners for the acquisition of a majority stake in Van Geloven is strategically significant. This acquisition will enhance Van Geloven's access to McCain's extensive European network, enabling it to amplify its growth ambitions in the frozen snacks segment. By leveraging McCain's resources and expertise, Van Geloven aims to solidify its status as a leading company in the frozen snacks market across Europe.

The partnership also aligns with McCain's growth strategy within European markets, as integrating Van Geloven's established brands, especially Mora, provides an opportunity to expand their appetizer and snack food market presence. The collaboration is expected to foster ongoing product innovation and market expansion, crucial for sustaining competitive advantages in the ever-evolving food industry.

Information about the Investor

McCain Foods is a family-owned global leader in the frozen food industry, renowned as the largest manufacturer of frozen potato products in the world. The company operates 41 production facilities across six continents, and its diverse product offerings are sold at retail locations and used in restaurants in over 160 countries. This international footprint allows McCain to leverage economies of scale and a vast distribution network.

McCain's focus on innovation and quality has positioned it favorably within the frozen food market. Alongside its extensive experience within the industry, McCain is well-equipped to support its subsidiaries and partner brands in navigating market trends and consumer demands, thus driving sustainable growth and maintaining product relevance.

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The deal between McCain Foods and TowerBrook Capital Partners regarding Van Geloven presents a promising investment opportunity. McCain’s investment is likely to empower Van Geloven to scale its operations and innovate further, thereby capturing a larger market share in an expanding industry. Additionally, the backing of an established leader like McCain can provide the necessary resources and guidance for Van Geloven to elevate its brand offerings and operational efficiencies.

Moreover, the continuously growing demand for frozen convenience foods in Europe indicates a favorable market environment for this venture. Van Geloven's strong performance in the Benelux region, coupled with McCain's expansive reach and industry expertise, positions the company for potentially robust growth. This collaboration also resonates with the overall trend of strategic acquisitions among food manufacturers aiming to enhance their product portfolios.

However, the success of this investment will depend on effective integration and the ability to innovate sustainably. If McCain can maintain the unique brand essence of Van Geloven while facilitating growth, this deal could yield significant returns, ultimately benefiting both companies and their stakeholders in the long run.

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