Yahoo Finance Quorn Owner Exponent Banks On Meaty Auction
The owner of Quorn, the meat-free food producer, has hired bankers to oversee a sale following expressions of interest from possible buyers including the American group behind Alpro, the plant-based milk alternative.
Sky News understands that Exponent Private Equity has hired Houlihan Lokey, a US advisory firm, to conduct a strategic review of Quorn.
Houlihan Lokey's work is expected to take about two months and is likely to lead to a formal auction later this year, sources said on Wednesday.
News of the appointment comes days after Sky News revealed that Exponent (NasdaqGS: EXPO - news) had received approaches from potential bidders including The WhiteWave Foods Company (NYSE: WWAV - news) , Alpro's owner.
Exponent, which has owned Quorn since 2011, is also likely to consider a stock market listing for the business that bankers believe could value it at more than £400m.
Based in North Yorkshire, Quorn has capitalised on growing consumer demand in some western markets for diets containing less red meat amid public health statistics highlighting an explosion in levels of obesity.
In January, the company published figures showing that sales had risen by 7% in 2014 to £150m, bucking a trend of flat sales performances from many of its competitors.
Quorn's stronger sales were due in part to a deal with Wal-Mart, the world's largest retailer, which now stocks its products in more than 2,000 stores.
The horsemeat scandal in 2013 stoked concerns about food provenance, boosting the manufacturers of non-meat ranges.
Its foothold in the US market is likely to appeal to prospective buyers such as WhiteWave.
Last month, the American company reported record results for last year, with revenue and profit both rising by more than 30%.
WhiteWave is one of the biggest producers of plant-based foods, with brands such as Earthbound Farm, Silk and Alpro.
Alongside WhiteWave, Hain Celestial, which has acquired British brands such as Covent Garden Soups in recent years, and Nestle (VTX: NESN.VX - news) , the Swiss giant which owns Kit-Kat and other confectionery products, are both likely to show interest in Quorn.
Quorn's origins date back almost 50 years, although the brand itself was created in 1985.
It has had a string of owners, including Zeneca, the pharmaceuticals group, and Premier Foods (LSE: PFD.L - news) , which sold the brand for £205m as it raised cash to stave off the threat of collapse.
Kevin Brennan, Quorn's chief executive, has vowed in the past to turn it into a billion-dollar brand.
Exponent and Houlihan Lokey declined to comment.
