Information on the Target

It's All Good Ltd (IAG), established in 2012, is a prominent snack manufacturer based in the UK, renowned for its commitment to innovation and quality. With a turnover exceeding £37 million and employing over 250 individuals across two facilities in Gateshead, IAG has successfully carved a niche in the competitive snack market.

The company has notably developed the premium brand, Manomasa, alongside producing private label tortilla chips, pitta chips, and rice cakes for major retailers. Under the guidance of its founder, Calum Ryder, and backed by NVM Private Equity since 2014, IAG has transitioned into the largest independent private label tortilla manufacturer in the UK while consistently achieving significant growth in sales.

Industry Overview in the UK

The snack industry in the UK is robust and continues to evolve with changing consumer preferences towards healthier options. The segment has benefitted from increasing demand for convenient, on-the-go snack products, driving innovation among manufacturers. This trend is further supported by the growing popularity of diverse snack options, such as tortilla chips and pitta chips, which offer unique flavors and quality.

Despite challenges posed by market saturation and competition, UK snack manufacturers have responded by enhancing their product offerings through innovation and sustainability practices. As consumers become more health-conscious, companies are focusing on ingredient transparency and the introduction of healthier alternatives, such as baked or low-calorie snacks.

Moreover, the impact of e-commerce has reshaped the distribution landscape, allowing snack brands to reach consumers more efficiently online. Leading retailers are increasingly incorporating private label products into their assortments, further bolstering the presence of companies like IAG in the marketplace.

Overall, the UK snack industry remains a vibrant sector with substantial growth prospects, particularly for manufacturers that can adapt to market trends and consumer demands.

The Rationale Behind the Deal

NVM's decision to sell It's All Good to Valeo Foods stems from the successful journey of IAG as a portfolio company since 2014. Throughout their partnership, NVM has invested significantly in enhancing IAG's brand presence and expanding its product lines, resulting in impressive yearly sales growth. This sale represents a strategic exit that recognizes IAG's evolution into a leader in the market, primed for further expansion.

With Valeo Foods' resources and capabilities, the acquisition is expected to accelerate IAG's growth trajectory and deepen its market penetration, leveraging synergies in operations and distribution.

Information About the Investor

NVM Private Equity (NVM) is a seasoned investment firm with over 30 years of experience focused on the UK SME market. As an independently owned generalist investor, NVM specializes in providing equity investments ranging from £5 million to £15 million, emphasizing support for ambitious management teams seeking to realize their business potential.

With a distinct advantage of having executives engaged in regional business communities across the UK, NVM excels at identifying growth opportunities in established firms. Their successful track record is credited to their hands-on approach and strategic partnerships, as exemplified in their relationship with IAG.

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From an expert perspective, the acquisition of It’s All Good by Valeo Foods appears to be a strong move for both parties. For IAG, this transaction represents the culmination of a well-executed growth strategy supported by NVM, which has seen significant development in brand recognition and market position. The backing from Valeo Foods could provide IAG with additional resources to further scale its operations and enhance its product offerings.

This deal also reflects positively on NVM’s investment ethos, as it signifies their ability to nurture and develop high-potential companies. The expertise and capital that Valeo Foods brings to the table can potentially elevate IAG to new heights, capitalizing on growth opportunities within the evolving snack industry.

However, it is essential to consider the challenges that the snack industry presents, including competition and changing consumer preferences. The long-term success of this acquisition will largely depend on how well IAG adapts to these market dynamics under the new ownership structure.

In conclusion, this deal exemplifies a strategic transition that may provide valuable benefits to both IAG and Valeo Foods, marking an exciting chapter for the snack manufacturer.

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