Addo Food Group: supportive secondary buyout

Continued growth strategy

In April 2017, LDC backed the secondary buyout of Addo to support the management team’s continued growth strategy.

This included investing in product innovation to meet increased consumer demand for plant-based products and driving growth across its customer base of leading UK retailers and supermarkets. It recently launched a range of vegan sausage rolls for Wall’s and Pork Farms’ first Porkless Pork Pie – an industry first.

Environmental sustainability has also been a major focus for Addo in recent years. In 2019 it reduced plastic waste at its Riverside site by 100 tonnes and has committed to reduce plastic waste by 20 per cent before the end of 2025, and food waste by 50 per cent by 2030.

Savouring success

In 2018, Addo’s strong performance led to a ranking of 16th on the Nottingham Post’s Top 200 Nottinghamshire Companies as well as the business’ highest-ever listing on the Sunday Times Grant Thornton Top Track 250 at 92nd place.

In June 2020 Addo announced it was expanding its team with 65 new jobs at its Palethorpes bakery in Market Drayton. It comes in response to the increased production demands of the company’s range of savoury products during the Covid-19 crisis, the expansion of new product lines at the site and to support business growth.

LDC exited its investment in Addo to European private equity firm PAI Partners in November 2020.

Alongside its acquisition of Addo Food Group, PAI Partners has announced the simultaneous acquisition of chilled foods supplier Winterbotham Darby (ComplEat Food Group), which also marks an exit for minority shareholder LDC. PAI Partners plans to bring the two businesses together under one platform. The completion of the transaction is subject to the customary regulatory approvals.

Paul Monk, Chairman of Addo Food Group, added: “I’ve worked with LDC on several business transformations and, as always, they have been a great partner on the Addo investment. As well as being the major shareholder, the LDC team contributed positively to strategic decision making and were supportive of management on the day-to-day running of the business.”