PE Firm Exponent Buys Gü Puds from Noble Foods

Private equity firm Exponent has reached an agreement to acquire dessert brand Gü from Noble Foods for an undisclosed figure.

It was revealed in November last year that bankers had been called in to run an auction of Gü, with reports suggesting the business was valued at around $212m.

Egg supplier Noble Foods acquired the brand in 2010 and has supported its strong growth over the last ten years. This included investing in a new manufacturing facility in Bishops Stortford, which opened in 2018.

Exponent currently owns several food & drink businesses, including Meadow Foods, Vibrant Foods, and Proper & Eat Real. It sold meat-free brand Quorn to Monde Nissin for £550m in 2015 having returned the business to growth.

Pete Utting, Managing Director at Gü said: “We are excited to be partnering with Exponent on the next stage of Gü’s growth journey. The team has a deep understanding of the food and drink sector and a strong track record in adding value to well-known brands.

“Exponent has already committed to a significant investment to further increase capacity at our UK site, which will enable us to meet our future demand from the UK, Europe and the US.”

Last year, Gü hit the top spot in the chilled dessert category, with retail sales value up 25% to more than $98m (Nielsen, Total Market data to w/e 24.04.21) after benefitting from a surge in demand from homebound consumers. It also has a strong presence in France and Germany.

Gü’s recent growth has been driven by product innovation, which has seen the business grow its range of cheesecakes, mousse and hot puds, as well as entering the free-from category. Its newest range – Gü Inspirations – was launched earlier this year, with further products said to be in development.

Simon Davidson, Senior Partner at Exponent commented: “We have followed the business for over a decade, having recognised its exceptional brand, great products and strong growth potential. We now look forward to supporting Pete and the team as they deliver its next phase of growth. Building on its success in the UK, we believe Gü has enormous international potential with the opportunity to create a truly global, premium indulgence brand.”

Duncan Everett, CEO of Noble Foods Group, added: “We strongly believe that Exponent has the necessary expertise to grow the Gü business even further, especially increasing its international reach. The sale allows us to invest and grow Noble Foods’ core business and brands.”

Source: Kam City