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Private equity losing out to trade buyers.(news)(Tayto Golden Wonder acquires Red Mill Snack Foods Ltd.)(Brief article)
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Grocer
- Article date:
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March 22, 2008
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Copyright informationCOPYRIGHT 2008 William Reed Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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[ILLUSTRATION OMITTED]
The acquisition of Red Mill Snacks by Tayto Golden Wonder is the latest sign that private equity groups are losing out to food manufacturers in acquiring smaller businesses, said a leading mergers expert.
Birmingham-based Red Mill--a supplier of value own-label snacks, Mr Porky's pork scratchings and Transform-A-Snacks--was bought for an undisclosed sum by Tayto this week.
Simon Peacock, who advised shareholders in Red Mill owner CF Holdings, said trade buyers were currently better placed than private equity groups to buy food companies. "Trade buyers can extract significant synergies through acquiring competitors in related sectors," said ...
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