S-Ventures acquires gluten-free brand Juvela
The enterprise company, that invests in brands across the natural, wellness and food-tech categories, purchased 100% of the share capital of Hero UK Ltd trading as Juvela for a consideration of £8m cash and five million new ordinary shares in S-Ventures.
The cash is split £6.5m on completion and £1.5m deferred plus 8% interest, payable in September 2023. Hero UK Ltd will change its name on completion of the transaction to Juvela Limited.
The five million shares to be issued to Hero Group as part of the consideration, will represent 3.8% of the Company's enlarged share capital and will make Hero group a new shareholder and partner in S-Ventures.
Gluten-free
Hero UK manufactures and distributes a range of branded gluten free products under the Juvela brand which include a high quality and tasty free-from range of breads, mixes and pastas sold in the UK retail and pharmacy markets.
Juvela is a business manufacturing and distributing gluten-free and free-from products from its factory in Pontypool, Wales. The company hsa been manufacturing gluten free food for people diagnosed with coeliac disease for over 25 years.
In the year ended 31 December 2021, Juvela achieved a gross revenue of £8.8m and has continued to operate profitably this year with expected gross sales of £8.6m.
Synergies
S-Ventures said that the synergies between its’ existing brands and Juvela are extensive with many opportunities to combine resources and cross fertilise brands and distribution channels, especially with its Lizza business, acquired in September 2022, which owns a large factory and free-from facility in Frankfurt.
Scott Livingston, the founder and ceo of S-Ventures said: "We are delighted to add the Juvela business to our platform. We welcome Hero Group as new shareholders and are excited about the opportunity this acquisition brings to drive substantial growth and value for all our shareholders. It has been a pleasure working with Hero on this transaction."
Rob Versloot, ceo of the Hero Group, said: "We are very pleased to have found an ideal home where Juvela can grow to its full potential alongside other similar companies. The divestment is part of our company's long-term strategy and supports the Hero Group's focus on its core categories of Baby and Toddler Food and Snacks, Healthy Snacks, and Natural Spreads."
