Frostkrone said the move would enable it to expand its international presence and build its finger foods and snacks portfolio.
The deal follows Somerdale International's announcement in January that it had acquired Abergavenny Fine Foods's blended cheese assets.
Located in Abergavenny, Monmouthshire, South Wales in a plant built in 2016 where a total of 200 staff are employed, Abergavenny Fine Foods is a market leader in the British retail and foodservice sector.
It makes finger food and snack combinations in the form of deep-frozen or chilled products including Halloumi Fries, Jalapeño Poppers, Mac'n'Cheese Croquettes, Jaffa Cake Bites. The company has enjoyed significant commercial growth in recent years. It began its life producing goats cheese, but went on to focus on added value free-from plant-based and vegan products.
Strong export business
Abergavenny Fine Foods also boasts a strong export business in Australia, Japan and the US. The company recorded sales growth of 16.2% in the year to 31 March 2020, chalking up revenue of £30.9m and operating profit of £664,827. Current managing director Jason Rees will continue to run the company in the foreseeable future.
Frostkrone - headquartered in Rietberg, North Rhine-Westphalia - specialises in the manufacture and sale of frozen finger food and snack products. Since it was founded in 1997, the company has established itself in the frozen convenience food sector.
Since 2018, the company has made a string of acquisitions across Europe and the US. It acquired UK firm Innovate Foods in February 2020. Its products are sold in Scandinavia, the Netherlands, France, Spain, Portugal, the UK, Switzerland, Eastern Europe, Asia and the US. It operates factories in Germany, France, Great Britain and the US.
“Abergavenny Fine Foods: here we have a cutting-edge business venture that focuses on its customers and their wishes," said Frédéric Dervieux, chief executive officer of Frostkrone. "Such a precept mirrors exactly the philosophy of the Frostkrone Food Group."
Frostkrone in seven locations worldwide
Following the acquisition of Abergavenny Fine Foods, Frostkrone now boasts seven locations worldwide. “We’re planning for the future. The finger food and snack market is continuing to grow and we, as an innovation driver, want to definitively grow with it,” Dervieux said.
“We believe it is especially the free-from market that holds great potential all around the world. The group of companies was able to convincingly position itself in this segment already last year.
"Now with Abergavenny Fine Foods, we have a strong partner in our team, a partner who has a tremendous amount of know-how at their fingertips and fantastic business connections to Australia and Japan. We now want to leverage this opportunity and continue expanding our exports.”
Bryson Craske to act as export consultant
Dervieux confirmed that Bryson Craske, commercial director at Abergavenny Fine Foods, would provide export consultancy advice to Frostkrone. Craske has worked as commercial director in the company his parents founded almost since its inception as Trentworth Limited in 1987.
“I am delighted that I will be able to support the company group and will look to contribute to its success well after the sale process is complete,” said Craske.
Rees said the merger with Frostkrone, would open up Abergavenny Fine Foods to more markets, strengthen its market position and consolidate its standing well beyond the UK's borders. “We are very excited to be joining the Frostkrone Food Group and continuing on our growth journey in frozen and chilled finger food together, bringing more value and job security to Wales and the local area in the process,” he said.
Emeram Capital Partners
Emeram Capital Partners is a key business development partner for Frostkrone. Christian Näther, founding partner of Emeram, said: "The successful expansion of the Frostkrone Food Group confirms our positioning as a business development partner. Emeram enables sustainable growth with its expertise and capital strength.
"Since our investment in 2017, we have now been able to realize the fifth follow-up acquisition and achieve double-digit annual sales growth. As a result, we have further developed the Frostkrone Food Group into a global player with seven locations worldwide and around 800 employees. Our comprehensive commitment to the portfolio companies will benefit employees, customers and investors alike."