Jacob's Biscuits and Batchelors owner Valeo Foods plans to borrow some €1.2 million to fund a buyout of the business, according to reports at the weekend.
Boston-based Bain Capital, founded by former US presidential candidate Mitt Romney, is backing a buyout of Valeo from current shareholder Capvest for €1.7 billion.
Reports at the weekend said that the food company was seeking to borrow nearly €1.2 billion to fund the transaction.
Credit Suisse and RBC are offering investors two sets of loans, a combined euro-sterling deal of around €1 billion and sterling denominated bonds of €175 million, which have been pre-placed.
Valeo owns Jacob’s Biscuits, Batchelors and Odlums flour, along with other products well known to Irish shoppers.
The group was founded in 2010 when private equity group Capvest, run by Cavan man Seamus Fitzpatrick, bought Batchelors and Origin Foods.
Since then it acquired a series of other manufacturers, including Italian biscuit-maker Balconi, Britain's Kettle Crisps, Rowse Honey and Fox's Glacier Mints.
It owns 85 brands in all. The business had sales last year of around €1.2 billion, according to reports.
Capvest signalled its intention to sell Valeo earlier this year. Last month Bain emerged as the most likely backer of a deal.
The sale goes ahead in a market awash with private equity cash following a pause on the back of Covid-19 and ultra-low interest rates.
Covid-19 has been good for businesses such as Valeo as closed restaurants meant people dined at home more.
The company did not comment at the weekend.
