Yeo Valley acquires PE-backed gourmet yoghurt producer
Somerset dairy company Yeo Valley has acquired gourmet yoghurt producer The Collective dairy brand.
Yeo Valley Production Ltd has reached an agreement to acquire private equity-backed New Zealand-based Epicurean Dairy (UK) Ltd and The Collective brand in the UK.
Rob Sexton, chief executive at Yeo Valley Production, said: “We are delighted to welcome The Collective to the Yeo Valley Production family. The Collective brand is renowned for never compromising on the quality and market-leading taste of its products. Add this to the values of the business, encapsulated in its B-Corp accreditation, and we see this as a perfect fit with Yeo Valley Production.
“This agreement will ensure The Collective brand continues to deliver taste-led innovation and great value. Together, we have ambitious plans to drive growth of delicious British dairy. It’s an exciting new chapter for us all.”
Sarah Smart, CEO at The Collective UK, said: “Yeo Valley Production is a long-time partner of The Collective and has been an integral part of the brand’s growth journey and success over the years. The close alignment of the businesses values and visions to deliver natural, healthy, great tasting and sustainable food that is better for people and planet, makes Yeo Valley the perfect home for the next stage of The Collective’s growth.
“I would like to thank all who have been on the journey with us to date including our loyal consumers, suppliers, customers and especially our incredible team who have passionately been the dairy shaker uppers.
“I look forward to The Collective building on this success further and continuing to deliver more great tasting innovative dairy to British fridges.”
In 2018, The Collective sold a 39% stake to Auckland-based private-equity fund Pencarrow, marking its first equity investment.
Yeo Valley, independently owned by the Mead family and employees, operates across five sites in Somerset and Devon.
It employs more than 1,700 people.
The company produces yogurt, cream, ice cream, and soup under the Yeo Valley Organic brand, with additional brands Tideford, Ubley, and now The Collective.
In 2018, Arla Foods acquired Yeo Valley’s liquid milk, butter, and cheese business.
Law firm Thomson Snell & Passmore advised Epicurean Dairy Holdings on the sale.
Shaun Brownell of Spayne Lindsay & Co acted as lead corporate finance partner on the deal, supported by associate director, Hannah Billings.
