Dutch frozen snack company IZICO, backed by private equity fund Egeria, has entered into an agreement to acquire Danish frozen food company Daloon A/S, including its UK subsidiary, Daloon Foods (UK) Ltd. Terms of the transaction, which is subject to clearance by relevant competition authorities, were not disclosed.
Founded north of Copenhagen in Charlotten in 1960 by Chinese immigrant Sai-chui Van, Daloon sells its product line across Europe. Its core business lies in frozen Asian ethnic snacks ranging from spring rolls and dim sum to mini samosas, bhajis, pakoras, and a wide variety of meat-free products. The assortment features over 100 different varieties of Oriental specialities, including Thai- and Indian-style items. While primary markets are in the UK, Germany and Scandinavia, the company also has substantial business in France, Spain, Austria, Switzerland and elsewhere.
“By taking over Daloon we can position ourselves even more strongly as a partner in the snack market with the highest quality, offering both branded and private label products,” said Kamiel Steendijk, IZICO’s chief executive officer. “Daloon’s international network also gives us the opportunity to continue developing the European market with our entire range.”
With manufacturing facilities in Katwijk and Deurne, Holland, and a third in Bocholt, Belgium, IZICO makes a large assortment of proprietary Beckers and Bicky branded frozen products as well as private labels. Offerings, which range from frikandels (meat rolls) and hamburgers to mini snacks, spring rolls and bread-based snacks are distributed to retail, foodservice and industrial clients across Western Europe.
Hemming Van, managing director and owner of Daloon (which means Great Dragon in Chinese), commented: “I have considered selling for some time now because of the increasing competitiveness in our business. Egeria’s interest in my company has revealed some exciting new prospects for Daloon. Over the years, the company has developed tremendously. It can now build on this platform in the future as part of an even stronger international player for the benefit of our customers and employees alike.”
The second-generation chief executive added: “Of course it is sad to say goodbye to Daloon after 55 years of family ownership. But I am also proud that we have succeeded in building my father’s vision into an internationally well-respected company. With this transaction, I am convinced that we have safeguarded his dream of making, tasty, good quality food at an affordable price.”
In signing the deal on behalf of IZICO, Steendijk stated: “The acquisition of Daloon is a logical step in our international strategy. Together with Daloon we are even better able to position ourselves as a full partner for the frozen snack assortment with the highest quality for our clients, both for brands and private label products. In addition, the complementary international networks of Daloon and IZICO provide opportunities to cross-sell our product ranges into each other’s networks.”
IZICO and Daloon will continue to operate as two separate companies, and Daloon will retain its headquarters in Nyborg, Denmark, and operations in both Nyborg and Newark, England, which employ 180 people.
