Having heard about our expertise in the food and nutrition sector, the managing shareholders at Vitae Naturals, a leading Spanish plant-based food company, contacted Clearwater for support in selling the business.
We were delighted to revisit an existing relationship with the owners, and to offer a familiar, capable presence at this crucial moment in the brand’s journey.
Following a 10-month process, Vitae Naturals was welcomed into the Kensing family. As a leading US manufacturer of speciality chemicals derived from vegetable oils, the transaction enabled Kensing to expand its product range and enter the European market.
Differentiating ability to develop and nurture relationships, combined with global vision when facilitating M&A activities.
Sector synergies
In addition to Kensing making an offer that met the valuation, the success of their bid was also influenced by their post-acquisition plans for Vitae Naturals. While Vitae was already operating in the US via a distributor, its sales volume was low. Kensing offered a direct approach that would boost sales in the US market. Vitae also represented a valuable European foothold.
The buyer was particularly interested in integrating natural, plant-based products into its existing portfolio, building on a rapidly growing health food trend. With the powerful backing of One Rock Capital, the integration of these two businesses reinforces Kensing’s natural-based proposition while enhancing the growth of both companies.
Honesty, trust and relationships
The unique characteristics of this transaction highlighted the importance of honesty and building trust when leading a client through an M&A process. Deeply understanding the perspectives of the three managing shareholders at Vitae Naturals was central to our approach, as was the honest guidance we delivered. This quality was essential when confirming that the time was right to sell the company, and in forming the valuation.
Clearwater’s dedication to honesty and trust has been a key enabler in our ability to build, maintain and grow outstanding relationships, which this transaction showcases. Our existing relationship with the owners strengthened our synergy with the client, and our global connections enabled us to operate across borders when identifying the right buyer. As a result, an uncommon and special integration was able to take place.
Our differentiating ability to develop and nurture relationships, combined with our global vision when facilitating M&A activities, equipped us to support this unique transaction.
In the year prior to this successful outcome, Clearwater deployed a team of experts and a range of capabilities to help Vitae Naturals navigate the process and identify a suitable buyer. Once it became apparent that Kensing, a One Rock Capital portfolio company, was the right candidate, a complex journey began to facilitate the acquisition.
Valuation and a global search
Demonstrating Clearwater’s expertise in the food and nutrition industries, a strong valuation for the company was established via a data-driven process. Vitae Naturals stood out as a global leader in the production of plant-based sterol esters and non-GMO natural vitamin E derivatives, giving the business a unique status in the market. This made the company highly desirable for those looking to add products with natural ingredients to their portfolio.
Having completed the valuation, we began a twofold approach that targeted both potential private equity and industrial buyers. For many M&A teams, cross-border transactions are infrequent, but Clearwater’s international familiarity and extensive relationships meant that we could take a truly global approach.
Following a highly competitive bidding phase, involving five industry leaders, Kensing emerged as the winner. This result added to the unique nature of the transaction, with it being rare for a large U.S. manufacturer to acquire a small, localised niche business in Europe. The successful process highlights our capabilities as a global partner and adviser.
The Clearwater difference
1 Leverage Clearwater’s deep food industry expertise and relationships.
2 Operate with honesty and transparency to build trust.
3 Deploy our expertise and technical capabilities to achieve a strong valuation.
4 Take a global approach when identifying potential acquirers.
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