Elysian Capital acquires cereal bar maker amid health food M&A boom

Private equity firm Elysian Capital has acquired cereal bar maker Wholebake through a management buyout (MBO). Former owner Bridges Fund Management, which backed a previous MBO at the firm, will remain with Wholebake as a minority investor.

The deal is part of Elysian’s acquisition of Wholebake’s parent company – Healthfull Holdings Group Limited – through its £325 million Elysian Capital III LP Fund. The deal closed for an undisclosed sum and saw Elysian work in conjunction with Wholebake’s CEO Simon Faithfull and Chairman Peter Unsworth.

The acquisition comes amid a boom in health food M&A, driven by consumers increasingly opting for healthier alternatives to snack foods. Wholebake produces a wide range of gluten-free snacks, such as protein, flapjack and muesli bars. It manufactures for both third parties, such as Nakd and Trek, and for its own brands, which include Bounce, Nine and Brynmor.

Elysian Capital partner Ken Terry commented: “The snack bar market is a highly attractive and growing space as consumers continue to transition away from traditional confectionery into tasty and healthier alternatives. Wholebake is the go-to co-manufacturer for brands and retailed own label in the UK.”

Terry added: “Elysian are very pleased to be supporting the team as they continue to grow the business’s branded and own label offerings.”

The company was founded in 1984 and has experienced rapid growth since its initial MBO in 2011. At the time, the firm’s revenues stood at around £4 million, rising to £11 million by the time of its 2014 Bridges-backed MBO. Wholebake’s most recent accounts, for the year ending March 31 2020, show it generating revenue of £26.3 million with operating profits of close to £800,000.

Oliver Wyncoll, who led Bridges Fund Management’s investment, said: “We firmly believe the business is very well-positioned for continued success in the coming years; so we are pleased to have the opportunity to remain as a minority investor, supporting the business and Elysian in the next exciting period of growth.”

Wholebake Chairman Peter Unsworth said: “Simon and I are proud to have played our part in that journey over the past three years and we would like to thank Bridges Fund Management for their support during our time here. We now look forward to the next chapter in the Wholebake story with our new partners, Elysian Capital. Their values and culture strongly align with our own and we are delighted that they will be partnering with us in Wholebake’s next phase of growth.”


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