The London-based private equity firm agrees to the deal in a transaction that values the protein bar makers at around £200 million
London-based private equity firm Lion Capital has agreed to sell its majority stake in healthy snacks bar manufacturer Grenade to Mondelēz International. Sources close to the deal said the transaction has valued the UK company at £200 million.
The deal is Mondelez’s first move in the UK, and marks its second foray into the high protein bar segment, following a $284 million deal it agrees on to bring US-based Perfect Snacks into its fold.
“Grenade’s great-tasting, on-trend products are a great platform for Mondelēz International in the UK market and beyond,” said Dirk Van de Put, chairman & chief executive officer. “This is another exciting opportunity to deliver on our strategy to be a global leader in broader snacking, including in the important area of well-being.”
Alan and Juliet Barratt launched Grenade in 2010 and positioned the brand in the sports nutrition category offering a range of snack bars with high protein content.
Grenade makes the Carb Killa bar, which Mondelez said has been the UK’s bestselling protein bar since 2016.
The company has built a strong e-commerce presence with approximately 25% of its sales coming from online channels.
Private equity firm Lion Capital acquired Grenade off Grovepoint in 2017 in a £72 million deal. Swedish-based private equity firm EQT also joint the transaction as a small shareholder.
The Grenade deal is Mondelēz’s second acquisition of the year. The snacks giant acquired premium biscuit company Gourmet Food Holdings two weeks ago, having acquired challenger chocolate brand Hu in January.
Mondelēz said it plans to operate Grenade separately to nurture its entrepreneurial spirit and maintain the authenticity of the brand while providing resources, support and international scale to help accelerate growth.
The current senior leadership, including Alan Barratt, will continue to run the business from its headquarters in the UK and will retain a minority equity interest in the company. The deal is expected to close by the end of March.
Date published: 22 March 2021