Source:          Real Deals

Langholm Sells Dorset Cereals

Langholm Capital has sold Dorset Cereals to Wellness Foods in a deal valued at around £50m (€64m).

Langholm led the management buy-in of the muesli manufacturer in April 2005.  The firm has quadrupled its money on the deal.

"This was already a perfectly healthy and tasty breakfast cereal before we bought it, but the problem was that no one knew about it," said Langholm co-founder Bert Wiegman.  "We have done all this without spending any money on advertising."

Langholm rebranded the product and built a new packaging plant.  Sales are understood to have increased from around £4m three years ago to £30m in 2007.  The head count has doubled to more than 100.

Wellness Foods is backed by Irish racing tycoons JP McManus and John Magnier.

Source:          Private Equity Online

Langholm Breakfast Investment Pays off

The Unilever-backed fund has made four times its money on its investment in fast-growing Dorset Cereals where employee numbers have doubled.

Langholm Capital, a mid-market consumer business specialist, has sold Dorset Cereals to Wellness Foods for four times its original investment into the branded muesli producer.

It acquired the business in April 2005.  No financial details were disclosed.

Since then the brand has been re-launched both in the UK and overseas and extended into other cereal categories: porridge, flakes and cereal bars.  In 2007, total branded sales nearly doubled, with Dorset Cereals becoming the number two muesli brand in the UK, as well as the fastest growing mainstream breakfast cereals company overall.

Langholm Capital invested in the business in both the factory and in brand development, with the number of employees more than doubling to more than 100

Dorset Cereal’s senior management team of Peter Farquhar, Nigel Horsman and Patrick Horton will remain with the business and will continue to be significant shareholders in the business with Wellness Foods supportive of management’s plans.

Bert Wiegman, partner of Langholm Capital, said in a statement: "The success demonstrates the benefits of Langholm Capital’s focused approach of investing in high growth consumer facing companies and supporting management teams who can produce above average returns."

Langholm Capital was advised on the transaction by McQueen and Travers Smith.

Langholm Capital is currently investing from a fund of €242 million, with Unilever, a leading FMCG company and Rabobank, the AAA-rated food and agri specialist bank, as its principal investors.  It focuses on businesses that are strategically positioned to capitalise on opportunities arising from emerging consumer and demographic trends, as well as fundamental changes currently taking place in consumer lifestyles and priorities.

Source:          FT.com

Wellness Foods bites into Dorset Cereals

Dorset Cereals, the upmarket muesli brand challenging Alpen for top spot on UK supermarket shelves, has been bought by Wellness Foods, a health food group backed by JP McManus and John Magnier, the Irish horseracing tycoons.

The £50m ($101m) purchase of the fast-growing muesli maker is an early success for Langholm Capital, the mid-market buy-out fund backed by Unilever and Rabobank.  It acquired Dorset Cereals from its founder in 2005 for a fraction of today’s price.

Wellness Foods is a privately owned food group that has been snapping up some of Britain’s best-known healthy eating brands including Rowse Honey, Grove Fresh, the organic juice company, and Fruit Bowl, the fruit snacks brand.

The Dorset Cereals deal was completed on Friday, according to market sources, generating a four-fold return on the equity investment of Langholm, which raised its maiden €250m (£193m) fund in 2002.  Langholm was advised by McQueen.

Dorset Cereals is the fund’s second exit after it floated Just Retirement, in insurer for the elderly, in 2006.  Wellness was advised by Spayne Lindsay & Co.

Describing its product as "honest, tasty and real", Dorset Cereals was rebranded under Langholm’s ownership.  It recently built a new packaging plant to present its product in more upmarket cardboard box sachets. Langholm invested about £3m in the brand.

Bert Wiegman, co-founder of Langholm said: "This was already a perfectly healthy and tasty breakfast cereal before we bought it, but the problem was that no one knew about it.  We have done all this without spending any money on advertising.

Sales of Dorset Cereals in the UK are thought to have increased from about £4m three years ago to almost £30m last year.

Wellness Foods, which also owns the "I am Fresh" smoothie brand, is backed by Lydian Capital, a Swiss-based private equity firm backed by Mr McManus, Mr Magnier and Dermot Desmond, the Irish financier.

Langholm will start raising a new fund later this year as its maiden fund is now more than 75% invested.

Source:          Private Equity Europe

UK - Langholm Sells Dorset Cereals

Langholm Capital has sold muesli brand Dorset Cereals to Wellness Foods for 50m, generating a reported 4-fold return.

Since it was acquired by Langholm in 2005 Dorset Cereals has become one of the fastest growing breakfast cereal brands.  Wellness Food is based in Windsor and is parent to UK companies in the healthy food and drink sector.

Wellness Foods bites into Dorset Cereals

Dorset Cereals, the upmarket muesli brand challenging Alpen for top spot on UK supermarket shelves, has been bought by Wellness Foods, a health food group backed by JP McManus and John Magnier, the Irish horseracing tycoons.

The £50m ($101m) purchase of the fast-growing muesli maker is an early success for Langholm Capital, the mid-market buy-out fund backed by Unilever and Rabobank. It acquired Dorset Cereals from its founder in 2005 for a fraction of today’s price.

Wellness Foods is a privately owned food group that has been snapping up some of Britain’s best-known healthy eating brands, including Rowse Honey, Grove Fresh, the organic juice company, and Fruit Bowl, the fruit snacks brand.

The Dorset Cereals deal was completed on Friday, according to market sources, generating a four-fold return on the equity investment of Langholm, which raised its maiden €250m (£193m) fund in 2002. Langholm was advised by McQueen.

Dorset Cereals is the fund’s second exit after it floated Just Retirement, an insurer for the elderly, in 2006. Wellness was advised by Spayne Lindsay & Co.

Describing its product as "honest, tasty and real", Dorset Cereals was rebranded under Langholm’s ownership. It recently built a new packaging plant to present its product in more upmarket cardboard box sachets. Langholm invested about £3m in the brand.

Bert Wiegman, co-founder of Langholm, said: "This was already a perfectly healthy and tasty breakfast cereal before we bought it, but the problem was that no one knew about it. We have done all this without spending any money on advertising."

Sales of Dorset Cereals in the UK are thought to have increased from about £4m three years ago to almost £30m last year.

Wellness Foods, which also owns the "I am Fresh" smoothie brand, is backed by Lydian Capital, a Swiss-based private equity firm backed by Mr McManus, Mr Magnier and Dermot Desmond, the Irish financier.

Langholm will start raising a new fund later this year as its maiden fund is now more than 75 per cent invested.

Source:          Dorset Business South

Cereal Thriller As Firm Celebrates Success

Dorset Cereals is supplying its mini packs to guests at airports and top hotels.

The Poundbury firm’s breakfast foods are being served at Claridge’s in London in the Virgin Clubhouse at Heathrow.

The developments come after the company took honours at two leading food awards and won a Queen’s Award.

Spokesman Patrick Horton said:

"We have had an excellent year with our mini packs and we’re thrilled to working with leading names such as Claridge’s and Virgin.  We are committed to making delicious cereals.

"Our much-loved muesli and fruity porridge recipes plus our new fruit-packed chunky slices and low fat naturally light flakes are all made using the best, deliciously tasty, natural ingredients possible.  Our beautiful little mini packs are now enjoyed in five-star city hotels, country bed and breakfasts or on warm farmhouse kitchen breakfast tables."

Dorset Cereals received four awards at the Great Taste Awards and Taste of the West Awards.

Source:          Dorset Echo

Five-Star Hotels Now Serving Dorset Cereals’ Product

Dorset Cereals is supplying its mini packs to guests at airports and top hotels.

The Poundbury firm’s breakfast foods are being served at Claridge’s in London and in the Virgin Clubhouse at Heathrow.

The developments come after the company took honours at two leading food awards and won a Queen’s Award.

Spokesman Patrick Horton said: "We have had an excellent year with our mini packs and we’re thrilled to be working with leading names such as Claridge’s and Virgin.  We are committed to making delicious cereals.

"Our much-loved muesli and fruity porridge recipes plus our new fruit-packed chunky slices and low fat naturally light flakes are all made using the best, deliciously tasty, natural ingredients possible.  Our beautiful little mini packs are now enjoyed in five-star city hotels, country B&B’s or on warm farmhouse kitchen breakfast tables."

Dorset Cereals received four awards at the Great Taste Awards and Taste of the West Awards.

Source:          The Grocery Trader

Dorset Cereals - Seen In All The Top Spots

Mini packs of cereal from Dorset are now enjoyed by guests at some of the UK’s most glamorous hotels and airport lounges.  Dorset Cereals, now the second largest muesli brand in the UK, is being served to guests at London’s celebrated Claridge’s and Heathrow’s Virgin Clubhouse, which was recently presented with the Best Business Class Lounge Award (World Airline Awards 2007).

"We have had an excellent year with our mini packs and we’re thrilled to be working with leading names such as Claridge’s and Virgin.  We are committed to making delicious cereals.  Our much-loved muesli and fruity porridge recipes plus our new fruit-packed chunky slices and low fat naturally light flakes are all made using the best, deliciously tasty, natural ingredients possible.  Our beautiful little mini packs are now enjoyed in five-star city hotels, country B&B’s or on warm farmhouse kitchen breakfast tables," said Patrick Horton from Dorset Cereals.

Dorset Cereals recently received four awards at two of the country’s leading food award schemes, the Great Taste Awards and Taste of the West Awards, for products in its range of premium cereals.  The recipes available at Claridge’s and the Virgin Clubhouse include Really Nutty Muesli, Super High Fibre, Super Cranberry, Fruit, Nuts & Seeds, Berries & Cherries, Organic Fruit, Nuts & Seeds and Tasty Toasted Spelt.

Source:          The Telegraph

Dorset Cereals In Crunch Sales Plan

Dorset Cereals, the healthy upmarket cereal brand favoured by the chattering classes, is heading for a sale that could value the business at more than £50m.

Buyout group Langholm Capital has appointed corporate finance house McQueen to advise on strategic options.

Poundbury-based Dorset Cereals is likely to attract interest from a wide range of trade buyers, such as Wellness Foods, the privately owned health foods group whose investors include Lydian Capital, a private equity firm backed by Irish horseracing tycoons JP McManus and John Magnier.

Wellness Foods has set about buying a string of Britain’s healthy food brands, such as Rowse Honey and organic juice company Grove Fresh, and industry sources said it is keen on buying Dorset Cereals.

Other potential buyers could include major cereal players such as Weetabix, which is owned by private equity firm Lion Capital.

Weetabix owns muesli brand Alpen and is likely to be interested in Dorset Cereals as it has grown to become the second most popular muesli brand in Britain with a market share of 20%.  The company has also recently launched a variety of products including a cereal bar, porridge and flakes.

Dorset Cereals, sold in America through retailer Whole Foods Market, was founded 20 years ago but only moved into the premium cereal brand market after a management buy-in backed by Langholm Capital.

Unusually, the success of the brand has been achieved by managing director Peter Farquhar and his team without any advertising campaigns.

None of the parties involved would comment.

Having it Large with Porridge

Dorset Cereals has launched a range of porridge in anticipation of a cold winter.  It has developed three premium varieties - apple & raisin, fruit & nut and mixed berries - that it said catered for a more discerning consumer. They are made from jumbo porridge oats and Scottish oats with a blend of fruit and nuts and take up to three minutes to prepare.

Peter Farquhar, MD, said: "Porridge is a significant area of growth within cereal, with increased interest in health making people choose more natural porridge."

New Cereal Packs Stand Out - and Up

Dorset Cereals’ range has had a packaging revamp to help them stand out - and up - on shelf. Rolling out now, the matt-tone boxes replace the range’s clear plastic bag packs, which kept falling over and made the products difficult to see on shelf, according to the company.

The new design also features leaf-shaped peepholes so that shoppers can view the contents. The existing five recipes have been reformulated with extra fruit, nuts and seeds, to create less dust in the packs, while a Berries & Cherries variant has joined the line-up. It combines raisins, sultanas and cereals with raspberries, blackcurrants, cherries, cranberries and blueberries.
  
Peter Farquhar, MD, said the new packs contained more cereal and were easier to store, open and re-close. "Feedback about the recipes has always been positive," he added. "But customers reported that they often couldn’t find the cereals in shops because the packs were always falling over on the shelves and, once they got home, they had to decant the cereals into new containers. "These packs not only look great, but are also much more user-friendly."