Price Bailey advise on acquisition for major food manufacturer

The Price Bailey Strategic Corporate Finance team recently assisted with a successful acquisition for Pioneer Foods (UK) Limited, manufacturers of own-label and branded breakfast cereals to major UK and international food retailers.

Pioneer Foods (UK) Limited is the UK arm of Pioneer Foods, one of the largest producers and distributors of food and beverage products in South Africa. Price Bailey’s Strategic Corporate Finance team advised Pioneer on their recent acquisition of The Good Carb Food Company, owners of granola brand Lizi’s, providing due diligence, lead advisory and tax advisory services.

Granola is one of the fastest growing products within the UK breakfast cereal market and the acquisition of The Good Carb Food Company aligns with the company’s overall strategic plan; to strengthen their existing branded product portfolio. Having acquired Stream Foods, the UK producer of children’s snacking brand Fruit Bowl in 2016 (a deal also advised by Price Bailey,) this most recent acquisition will help the group to realise its future aspirations for growth.

Simon Blake, Partner at Price Bailey said: “This latest transaction highlights our continued success and expertise in completing Merger and Acquisition deals within the food and beverage sector. We expect our relationship with Pioneer to continue as they seek to explore further strategic growth opportunities.”

Jonathon Thorn, Managing Director at Pioneer Foods (UK) Limited commented: “The acquisition of the Lizi’s brand is a good fit within the Pioneer group product and brand portfolio mix, we as a team are excited about the future growth opportunities that a granola brand will bring to the group. Price Bailey’s Strategic Corporate Finance team have been our trusted advisers for several years, in assisting us in achieving our growth aspirations through multiple strategic acquisitions.”

Tax Director Richard Grimster says: “I’m really pleased to have been able to deliver the transaction alongside the finance team in Pioneer UK. It was a really interesting deal, with a tight timeline and significant tax complexities which we enjoyed overcoming.”