Quorn Foods sold for 550m

Meat-free food manufacturer Quorn has been bought by a Philippine noodle company for £550 million.

Monde Nissin purchased the company, fending off competition that included companies such as chip-maker McCain; Nomad Foods, which owns Birds Eye and Findus; French yoghurt maker Danone and the Irish-based Kerry Group.

Quorn, which is known for selling meat-free versions of mince, nuggets, burgers and sausages, operates in 16 countries and is based in North Yorkshire.

The company's products are made from mycoprotein, which comprises fermented fungus and sugar. It has gained popularity since the horse meat scandal. The "Meat-free Mondays" campaign has also helped the firm's growth.

Quorn had been put up for sale by its British private equity owner Exponent, which has doubled its money on its original £205m investment in the food group.

Exponent brought in corporate finance experts Spayne Lindsay and Houlihan Lokey to help with the sale.

Future plans

The Telegraph reports that Monde Nissin has bought Quorn as part of its plan to bulk itself up ahead of a stock market listing next year and to tap into the growing enthusiasm for health food. Sources said that the the Makati-based company is valued at around £600 million and it may choose to float in London or New York.

"Quorn represents an important new leg in our offering," said Monde Nissin’s chief executive, Henry Soesanto. "We are excited by the growth potential of the global meat alternatives market, which complements our strategy perfectly," he added.

Quorn Foods has about 620 employees, which are spread across three UK sites and internationally. These include Stokeley in North Yorkshire, Billingham on Teesade and Methwold in Norfolk, Frankfurt in Germany and Chicago in the US.

Commenting on the sale, Quorn's chief executive, Kevin Brennan, said the deal would help the business grow: "We have an ambition to be the world leader in meat alternatives, ultimately creating a $1 billion business. Monde Nissin [...] provides the capability to expand the brand into Asia."

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.