LONDON, UK: S-Ventures plc (AQSE: SVEN) introduced the acquisition of 100% of the share capital of Hero UK Ltd buying and selling as Juvela.
Hero UK has been acquired from the Hero Group, a Swiss consumer meals group. The firm manufactures and distributes a vary of branded gluten free merchandise under the Juvela model which include a top excessive quality and tasty free-from vary of breads, mixes and pastas sold within the UK retail and pharmacy markets.
S-Ventures plc has agreed to purchase Juvela for a consideration of £8 million money and 5 million new ordinary shares in S-Ventures. The money is split £6.5 million on completion and £1.5 million deferred plus 8% interest, payable in September 2023.
The 5 million shares to be issued to Hero Group as a half of the consideration, will represent 3.8% of the Company’s enlarged share capital and can make Hero group a model new shareholder and partner in S-Ventures PLC.
The Hero Group is an worldwide meals firm focused on branded dietary meals merchandise which generated revenues of CHF 1.14 billion in 2021. The Group, boasts a global footprint and its portfolio consists of many well-known worldwide and native brands.
In order to present funding for the Acquisition and for general working capital needs, S-Ventures PLC has additionally entered into new mortgage facilities provided by Shawbrook Bank Limited together with a 4 year time period mortgage of £5.5m and a £500,000 revolving credit score facility.
Juvela is a enterprise manufacturing and distributing gluten-free and free-from merchandise from its factory in Pontypool, Wales. They have been manufacturing gluten free meals for people diagnosed with coeliac illness for over 25 years and are the main model serving the UK coeliac community under the model name Juvela. The product vary additionally includes bread, flour mixes, breakfast cereals, pasta, pizza bases, crackers and biscuits.
In the year ended 31 December 2021, Juvela achieved a gross income of £8.8 million and has continued to function profitably this year with anticipated product gross sales of £8.6 million. The net assets acquired amounted to £7.5m.
The synergies between the Group’s existing manufacturers and Juvela are extensive with many alternatives to mix resources and cross fertilise manufacturers and distribution channels, particularly with the Group’s Lizza business, acquired in September 2022, which owns a big factory and free-from facility in Frankfurt.
The UK free-from market additionally presents a significant growth alternative for S-Ventures having grown at a compound annual growth rate of 6.7% between 2019 to 2021 to £1.86billion, in accordance to the UK Free From Grocery & Pharmacy Market report. The Company believes that this sector is very promising with the potential for substantial future growth.