Marktlink advises Machandel on its full sale to Windmill Organics
British company Windmill Organics has completed the full acquisition of Machandel Organic Foods, a counterpart based in the Netherlands.
UK-based Windmill Organics has been at the forefront of organic foods in the UK since 1978, when founder Noel McDonald opened his first shop on Fulham Road in London.
Following the success of his organic-focused shop, in 1992 McDonald launched Biona, a product line of 100% organic foods that has grown into a business with more than 350 products being sold to consumers in 30 countries worldwide.
In 2012, to enlarge its production capacity and product lines, Windmill Organics acquired a majority stake in Machandel Organic Foods, a Dutch family business that has been producing bio-based jarred goods for over thirty years. Among the products the Dutch company brings to market are soups, fruit purees, sauces, bottled vegetables, and organic based oils and butters.
With company founder Piet Glasbeek nearing his retirement, Glasbeek recently approached M&A firm Marktlink to support with safeguarding the firm’s continuity. “There were two options: a complete acquisition by Windmill Organics or a joint sale to another party,” recalls Karel Kramer, who supported the deal process together with Marktlink colleagues Erwin Wilbrink and Simone van Haarlem.
Following a review process, it soon became clear that Windmill Organics and Machandel Organic Foods were aligned on closing a deal under reasonable conditions. Marktlink’s experts developed a valuation for the remaining 40% of the Machandel Organic Foods business and commenced negotiations with Windmill Organics.
“We also had discussions about the desired structure and ultimately we were able to work out a successful transaction. This bolt-on acquisition is a great solution for the continuity of the company and for Windmill Organics,” says Kramer.
Machandel was founded on the ideology that honest and healthy food with the least possible impact on the environment should be accessible to everyone. “That is still the company’s vision within the Windmill Organics group. The company will maintain its distinctive position in the market and continue to guarantee the biodynamic nature of its products.”
Meanwhile, Windmill Organics will invest in the further expansion of Machandel’s capacity and product range. “The ever-growing popularity of organic and sustainable food offers both parties plenty of opportunities for growth,” concludes Kramer, who adds that he expects to see further consolidation in the ‘sustainable foods’ segment within the food sector.
According to a new report from OC&C Strategy Consultants, sustainable consumption is unlocking a £150 billion revenue opportunity for UK retail.
Marktlink is a mid-market focused M&A specialist with offices in the Netherlands, Belgium, the United Kingdom, Germany and Denmark.
