Investors gain in €600m Valeo refinance

SHAREHOLDERS at Valeo Foods have a received a dividend as part of a €600m refinancing of the company’s debts.

The Sunday Independent has learned that around €100m of the debt raised was allocated for a €10m dividend to shareholders, repaying original equity investors in the company, and paying off a range of other debt instruments.

Valeo Foods declined to comment on the transac- tion, which took place in the summer.

CapVest — the Mayfair-based private equity firm run by Cavan businessman Seamus Fitzpatrick — has a majority stake in the business which owns brands including Jacob’s, Batchelors, Odlums and Chef.

The business was created by CapVest as a vehicle to acquire Batchelors and Origin Foods — a division of listed Origin Enterprises.

Valeo — run by former Aer Lingus chief operating officer Seamus Kearney — bought tea and coffee maker Robert Roberts and health food company Kelkin from DCC in a €60m deal a number of years ago.

It has also recently expanded into continental Europe via the acquisition of Italian sponge-cake maker Balconi.

News of the dividend emerged after the Sunday Independent previously revealed some investors in a CapVest fund were being bought out by private-equity firm HarbourVest Partners for €200m.

Investors were also of- fered the chance to roll their interests over into a new entity seeking to maximise the remaining assets in the fund — the stake in Valeo and another majority stake in the Mater Private Healthcare Group.

That entity is still being managed by CapVest.

The transaction came after CapVest received unsolicited approaches from investors looking to buy the assets earlier this year. The Mater healthcare group had been up for sale as recently as last year, but no deal took place.