Midsona buys plant-based food company System Frugt

Swedish firm Midsona has acquired System Frugt, a Denmark-based provider of plant-based foods, in a deal valued at approximately Skr298m ($33m) on a debt-free / cash-free basis.

Established in 1991, System Frugt supplies dried fruit and nuts to customers within the retail grocery industry under Earth Control and Delicata brands, as well as private label products.

Its portfolio includes a range of products and mixes, with and without seasoning, and convenient choices for snacking salad topping and cooking.

System Frugt has a workforce of 128 employees, with the majority of them employed at its production facility and head office in Tilst, Denmark.

The acquired is expecting to report sales of Skr562m ($63m) and adjusted EBITDA of Skr38m ($4.2m) in 2020.

Additionally, System Frugt operates sales organisations in Denmark, Sweden, Norway and Finland.

Midsona CEO Peter Åsberg said: “System Frugt is an ideal complement to Midsona, a platform for healthy, dry plant-based foods.

“System Frugt’s Earth Control brand has a uniquely strong position in Denmark and is growing steadily in the rest of the Nordic region. By leveraging our existing platform, we see opportunities to grow System Frugt’s business outside its home market.

“At the same time, we also see great opportunities in Denmark, where our combined portfolios will result in us becoming one of the leading players in the healthy, dry foods segment. In addition, the acquisition provides us with greater production capacity, including roasting and new packaging capabilities, and we also see significant synergies.”

Midsona financed the acquisition with existing cash resources and credit facilities.

The acquisition of System Frugt could significantly boost Midsona’s position in the healthy snacks and plant-based foods categories.

For this deal, Strata Advisory is acting as exclusive financial advisor to Midsona, while Fredersen Advokatbyrå and DANDERS & MORE served as legal advisers.

Last year, in a separate development, Midsona acquired Alimentation Santé from Panzani.