Quorn Foods agrees to be acquired by Monde Nissin

UK-based meat substitute product company Quorn Foods, has agreed to be acquired by Philippines-based food products manufacturer, Monde Nissin for £550 million. The deal is likely be completed by end of October.

Monde Nissin is buying Quorn, under its expansion strategy ahead of a stock market listing that planned for 2016.

Monde, currently valued at around £600 million could list in London or New York in order to tap the growing interest of investors for health food businesses.

Apart from allowing Monde Nissin to expand its health and sustainability business, the deal would also complement the dips and healthy drinks acquisitions it recently made in Australia, according to Exponent Private Equity.

Henry Soesanto, CEO at Monde Nissin said, "Monde Nissin have been investing in on-trend, better-for-you products internationally in line with our strategy to become a global diversified food company.

"Quorn represents an important new leg in our offering. We are excited by the growth potential of the global meat alternatives market, which complements our strategy perfectly."

Other potential buyers included chip maker McCain, Nomad Foods, the new owner of Birds Eye and Findus, French yoghurt maker Danone and Ireland's Kerry Group.

Monde, which sells meat-free mince, nuggets, burgers and sausages in 16 countries was understood to have been acquired by Quorn,  as part of a plan to bulk itself up ahead of a stock market listing next year.

According to sources, the Makati-based company, valued at around £600 million, could opt to float in London or New York and tap into the growing investor enthusiasm for health food businesses, The Telegraph reported.

Quorn, made from mycoprotein, produced from fermented fungus and sugar, had gained immense popularity in the wake of the horse meat scandal and a ''meat free Mondays'' campaign led by Sir Paul McCartney.

Asian buyers were increasingly buying European consumer businesses and last year China's Hony Capital bought Britain's Pizza Express chain for around £900 million.

''Quorn represents an important new leg in our offering," said Soesanto. ''We are excited by the growth potential of the global meat alternatives market, which complements our strategy perfectly.''