Produce Investments the holding company of potato supplier Greenvale is to become the first fresh food supplier to float on the London Stock Exchange in more than three years as it looks to broaden its horizons beyond potatoes.

Investment bank Investec is preparing an admission to the Alternative Investment Market, and the deal is expected to complete by mid-November. Greenvale already has investors lined up for the IPO, who have underwritten investments to the value of £15m.

There were opportunities for growth both organically and through acquisitions, and Greenvale wanted to be in a position to respond to such opportunities when and if they came up, said Greenvale CEO Angus Armstrong.

Produce Investments was open to opportunities outside the potato sector as well as within, he added. “The aspirations of the business have got to be bigger than just the potato sector and we will look at opportunities in other product offerings, but only if the opportunities look sensible and if it can bring a more diverse product mix to the group.”

Produce Investments is thought to be the first fresh food supplier to float on the London Stock Exchange since Hilton Food Group in May 2007. “It’s quite unique within the industry and with that brings a certain level of excitement over what we could do in the future,” said Armstrong.

The company had chosen a public listing rather than bank loans to fund expansion plans because “the banks are open for business, but it’s in a limited fashion and you have to look at other ways how to fund growth”, he added.

It has appointed Sir David Naish, a former president of the NFU, former chair of Arla Foods (UK) and current non-executive chair of the Hilton Food Group. He will join the board prior to the IPO in early November.

The company will have a £30m to £40m market capitalisation post-IPO. Greenvale’s two biggest retail customers are Tesco and Sainsbury’s.

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