Daloon owner sells up in face of heated competition

Danish ethnic frozen food producer Daloon – and its UK subsidiary – is set to be snapped up by a Dutch private equity-backed rival.

Izico, a portfolio company of private equity fund Egeria, has agreed to acquire Daloon to extend its reach from the Netherlands and Belgium, where it has three manufacturing facilities, into Scandinavia and north-west Europe.

It said the two companies would combine a “strong market position, innovative power and geographical reach”.

Daloon owner and MD Hemming Van added he had considered selling the group for some time as the industry became increasingly more competitive.

“Egeria’s interest in my company has revealed some exciting new prospects for Daloon,” he said. “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.”

Daloon was founded in Copenhagen in 1960 by Sai-chiu Van, a Chinese immigrant, and has been in the ownership of the Van family ever since. It supplies spring rolls, samosas and onion bhajis, as well as meat-free range in the UK, to the retail, food service and wholesale sectors across Europe, primarily Scandinavia, Germany and the UK, where it has a Nottinghamshire factory and turnover of just more than £9m. The group has revenues of €35m (£25.1m).

“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,” Van added.

Izico, part of Egeria since 2014, previously operated as Beckers Benelux and Favory Snacks. As well as manufacturing its own brand, it also produces private label frozen snacks for retail, food service and industrial customers - with sales of €90m (£64.6m).

“The acquisition of Daloon is a logical step in the international strategy of Izico,” CEO Kamiel Steendijk said. “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, with Daloon retaining its headquarters in Nyborg, Denmark and operations in Nyborg and Newark, Nottinghamshire.