Leamington Spa based private equity fund Elaghmore has bought Orchard House Foods Ltd, one of the UK’s largest suppliers of prepared fruit, fresh fruit drinks and desserts, from USA-based Hain Celestial Group. The purchase price was not disclosed.
Orchard House and its associated brands supply retailers, on-the-go food outlets, food service providers and manufacturers throughout the UK. Orchard House has an impressive client list which includes Marks & Spencer, Morrisons, Pret A Manger, Sainsbury’s and Tesco.
Headquartered in Corby, Northamptonshire with additional facilities in Gateshead, Orchard House employs around 1,000 people. The Company uses a global supply chain, sourcing and preparing a range of exotic fresh fruits from across the world.
Elaghmore will support the Orchard House management team as the business enters its next growth stage. Elaghmore founders Andy Ducker and David Manning have experience working with a global fruit business as investors and executives at Chaucer Foods. They developed and subsequently sold Chaucer Foods to Nagatanien Holdings Co. Limited in December 2016 in a deal worth $130 million.
The acquisition of Orchard House and its associated brands is Elaghmore’s tenth deal – and first from Elaghmore Fund 1A. Elaghmore first launched its initial fund on December 2016 with a raise of £60 million from institutions in the US and Europe. In December 2020, Elaghmore raised a further £30 million from US institutions to create Elaghmore Fund 1A.
Elaghmore’s previous nine acquisitions have been combined to create three distinct businesses: Total Vehicle Solutions Group; Alucraft & EAG; and Hexcite Group. Together, the three groups have a combined annual turnover of £170 million and employ more than 900 people across the UK & Europe.
Michael Rice, Investment Director at Elaghmore who led on the Transaction, said: “Orchard House is a market-leading business which supplies products that many UK customers buy daily. We are very proud that we will be part of Orchard House’s growth and development as we look beyond COVID-19. Orchard House is a flagship investment for Elaghmore, and our financial strength and operational expertise means we can help Orchard House prosper.
“Elaghmore’s deal pipeline is full of interesting opportunities. The pandemic has seen the need for many successful companies to seek new investment, especially as Government support schemes end, and bank support is limited. Elaghmore is well placed to help these companies, and we look forward to continuing to create significant value for our investors.”