Sector News

Re:Capital to buy Melbourne’s Betta Foods

October 20, 2014
Consumer Packaged Goods
British turnaround and restructuring specialist Re:Capital is poised to buy Melbourne’s Betta Foods in its second acquisition this year in Australia’s confectionery industry.
 
Re:Capital in February this year acquired chocolate maker Ernest Hillier and its stablemate brand Newmans in its first foray into the Australian food sector.
 
At the time, Re:Capital chief executive Paul McGowan signalled he was eyeing further acquisitions as the entity sought to build more scale.
 
It is understood to be in final negotiations with Betta Foods, whose flagship brands include Capricorn licorice and Eskimo chocolate snowballs. Betta Foods has revenues of about $40 million annually and sells a broad range of confectionery items which also includes marshmallows and other chocolate items.
 
The Capricorn brand of licorice products is sold in the two major supermarket chains of Woolworths and Coles, and in the Aldi chain.
 
Betta Foods also has a sizeable ­business supplying ice-cream cones to retailers and the food service market in Australia. It has a private label confectionery manufacturing business as well.
 
Established in 1954, the company is based in the outer Melbourne suburb of Broadmeadows and has a workforce of about 180 people. The business is believed to be controlled by a management team led by CEO Alex Sloan, after a reshuffle of interests earlier this year as it came out of private equity hands.
 
A private equity fund associated with Investec made an initial investment of $10 million in Betta Foods about five years ago and there have been other related entities including MGB Equity Growth which have had a large holding on the way through.
 
Re:Capital has been undertaking substantial restructuring over the past few months at the Ernest Hiller ­chocolate factory at Coburg in ­Melbourne’s north, and the Betta Foods entity is likely to be shifted into the same holding company as Re:Capital looks to generate synergies.
 
By Simon Evans
 

comments closed

Related News

November 1, 2024

AAK divests US foodservice site and eyes European expansion with US$37.8M investment

Consumer Packaged Goods

Sweden-based AAK is selling its US foodservice facility in Hillside, New Jersey, to Stratas Foods, which supplies fats, oils, mayonnaise, dressings and sauces to the foodservice, food ingredients and retail private label markets in North America.

November 1, 2024

Kraft Heinz appoints OpenTable CEO Debby Soo to board of directors

Consumer Packaged Goods

This move signals Kraft Heinz’s commitment to integrating technological innovation into its strategic framework amid a rapidly evolving food and beverage landscape. Soo brings over a decade of experience in technology transformation and public company leadership, having previously held significant roles at Kayak, including chief commercial officer.

November 1, 2024

Paulig acquires UK sauces and condiments producer Panesar Foods

Consumer Packaged Goods

The deal enhances Paulig’s flavour expertise with Panesar’s manufacturing and product innovation capabilities, enabling faster product launches. With this move, both companies aim to strengthen their positions in World Foods through complementary market reach and product lines.