Price Bailey Strategic Corporate Finance recently assisted the South African listed Pioneer Foods Group Limited with its acquisition of Wisbech-based Streamfoods from the Wellness Group of companies for £7.5 million. The deal closed last week.
Pioneer Foods is one of the largest producers and distributors of food and beverage products in South Africa and provides own label manufacturing and packaging services for many leading retailers in the UK and international markets.
The Price Bailey team based in Cambridge was originally introduced to Pioneer via their UK subsidiary Bokomo Foods, which was already an existing audit client. Bokomo has manufacturing facilities in Peterborough and Wellingborough.
This acquisition is in keeping with the stated strategic intent of acquiring and bolstering Pioneer Foods’ product portfolio in the UK. The company was also looking to diversify into alternative product category lines that complemented their existing portfolio and approached Price Bailey due to its extensive experience in mergers and acquisitions and ability to provide a flexible search service to identify targets for acquisition.
Price Bailey’s initial targeting and appraisal exercise led to a number of target opportunities being identified which, after further financial analysis and evaluation, led to a short list of companies selected to approach. Price Bailey coordinated initial dialogue between parties which resulted in a number of positive meetings between key representatives of Pioneer, Price Bailey and the target owners, one of which was with Wellness Foods.
Following initial meetings, Price Bailey assisted Pioneer in conducting further due diligence enquiries leading to a formal offer being made for Streamfoods.
Price Bailey’s role then turned to assisting Pioneer with its further due diligence enquiries as well as providing tax, and lead advisory services leading to a successful completion.
“Price Bailey has been instrumental through every stage of our recent merger and acquisition activity. Their ongoing advice and support has been invaluable,” said Pioneer Foods’ Head of M&A, Hannes Visser.
“Successful acquisitions require considerable planning and investigation during all stages of the process and we were able to provide appropriate support throughout this deal,” said Simon Blake, Partner at Price Bailey Strategic Corporate Finance. “We’re delighted that our work with Pioneer has resulted in a positive conclusion.”