IK seeks tasty return from Danish food businesses

This is the seventh deal from IK’s Fund VII, which closed last December just under €1.4bn

UK-based IK Investment Partners has agreed to become the majority shareholder in two Denmark-based food companies that are set to merge, the firm said in a statement.

Family-owned firms Løgismose and Meyer are set to combine to “achieve their joint-ambition of improving the quality of food”, according to the statement. Dansk Vækstkapital will also invest directly in the company.

A source indicated to PEI that the enterprise value of the newly-merged company is €110 million.

IK declined to comment on the transaction.

Løgismore’s activities include hotel and restaurant operations, production of dairy products and other foods for retail sale, imports of wine, oysters and other products, and operation of its own stores. The business, which was established in 1965 and is owned by brothers Jacob and Mikael Grønlykke, employs 160.

Meyer founder Claus Meyer is a Michelin-starred professional chef who has written a number of cookbooks and hosted his own television series. Among other activities, the company operates restaurants and canteens.

The new company has annual sales of around DKK 1 billion (€134 million; $167 million) and 830 employees, according to IK. Current Meyer CEO Steen Halbye will appointed as the group’s CEO, and Claus Meyer, Jacob and Mikael Grønlykke, and Løgismose’s Steen Aalund Olsen will continue to be part of the ownership structure. The ownership will also include Merete Holst from Meyer’s Kantiner as well as the management team, IK said.

IK will make the investment from its IK VII fund, which closed last December just under €1.4 billion. The 2012-vintage vehicle was initially targeting €1.7 billion, according to PEI’s Research and Analytics division.

In October the firm bought Evac Group, a Finland-based water and waste management business which focuses on the marine, offshore and building sectors. A source familiar with the deal indicated that the enterprise value was between €100 million and €200 million. Other investments from the fund include Norwegian survival suit rental business Hansen Protection, Ampelmann, a supplier to the offshore energy sector, fuel management services business VPS, Ramudden, a specialist provider of temporary traffic control services, and Exxelia Group, which manufactures components used in the medical, railway, defence and oil sectors.