Fortitude’s Birch & Waite acquires Epicurean Foods

afr.com:

Sydney-based Birch & Waite Foods, backed by Fortitude Investment Partners, has acquired Queensland’s Epicurean Foods which whips up dressings, sauces and desserts geared to higher-end customers.

Both businesses focus on higher-end commercial food customers. Eddie Jim

Epicurean Foods sells its produce to commercial customers across the country, who can order batches as small as 15 grams to as big as a tonne. It uses unique recipes and organic ingredients, with products like vegan mayonnaise, protein sauce or a probiotic dressing.

It’s a perfect match for Birch & Waite, which is held in partnership between its boss Paul O’Brien and Fortitude. The 30-year-old business sells to professional chefs and home cooks in Australia and overseas.

The acquisition beefs up its manufacturing capability, with added capacity and scale leverage in procurement via Epicurean’s Queensland facility.

“We are pleased be able to invest in production in Queensland, to enable the growth of both businesses, further strengthening our commitment to innovative products, that celebrate the taste of Australian produce. The Birch & Waite team are excited to welcome and share mutual learnings with the EP Foods staff,” O’Brien said.

Fortitude has north of $250 million in funds under management, and typically invests between $10 million and $50 million in its portfolio companies. It has recorded returns of some 20 per cent per annum net of fees, and returned $400 million to investors.

It’s Fortitude’s third deal this year. In May, it bought a majority stake in Queensland electricity equipment supplier The Energy Network. The 25-year-old business was seen as a beneficiary of the explosion in capital expenditure forecast by the Australian Electricity Market