Meatless

Jos Hugense

Jos: "When I started Meatless in 2005, that decision was primarily driven by the desire for diversification. Coming from our meat processing company, I foresaw that the outlook for meat would eventually become more challenging. Therefore, it seemed prudent to also begin producing plant-based meat substitutes alongside.

Our plant-based production quickly grew substantially, prompting us to transfer our meat activities to another company. Particularly after 2010, our growth accelerated significantly; there was not a single year where we grew less than 20 percent. In recent years, annual growth rates escalated to 25 and even 50 percent.

I had been contemplating selling the company for some time. We were on the brink of substantial investments in expanding production capacity. Additionally, the team needed further expansion with individuals capable of accommodating such growth. My personal desire to gradually scale down conflicted with this growth trajectory.

The plan emerged to seek out a robust partner capable of propelling Meatless into its next phase. After considering options for facilitating the acquisition, I ultimately turned to Rembrandt. While Meatless does have some board members and shareholders with experience in mergers and acquisitions, I lacked such expertise myself. Therefore, it seemed prudent to engage an independent entity with the appropriate network.

I collaborated extensively and professionally with Rembrandt. Particularly in the valuation and its substantiation, Rembrandt's added value was immense. In a relatively young, rapidly growing niche market, establishing a realistic value is exceedingly challenging. It's a delicate game; you must partly base the valuation on the future and partly on the market's promise. Rembrandt succeeded in providing a well-founded and, as later proved, realistic assessment of the value. What aided this was Rembrandt's ability to tap into the expertise within Rabobank M&A, which previously facilitated the sale of Vivera to JBS. Through this avenue, Rembrandt gained thorough market insight and direct access to all relevant parties.

Meatless was ultimately acquired by Beneo, a subsidiary of the German publicly traded company Südzucker. While I was familiar with Südzucker to some extent, it became apparent during the process that the company was keen on expanding BENEO's protein division, which is a producer of functional ingredients for food, feed, and pharma. This brought Südzucker onto our radar as a potential acquisition partner. Fortunately, our cultures were found to align exceptionally well, facilitating a smooth transition.

Throughout the sales process, particularly in the first half of 2022, we experienced some apprehension due to the Russian invasion of Ukraine and shifting economic conditions. The escalating energy prices and overall inflation are concerning, particularly for our sector. In hindsight, we are pleased to reflect on a successful and well-timed sales journey culminating in a buyer who truly views Meatless as a crucial cornerstone for the future.

I will remain as CEO of Meatless for the next few years, during which we have set ourselves the goal of expanding the company approximately four to five times larger. This is an ambitious and challenging target on the horizon, one that I am eager to sink my teeth into for a while longer.

Bram Ledeboer (SHIFT Invest, shareholder in Meatless): SHIFT Invest has been involved as an investor with Meatless from the outset. Naturally, we aim to provide our shareholders with a strong financial return, but equally important to us is ensuring a sustainable impact. Meatless contributes tangibly to a better world.

Throughout the sales process, Meatless, SHIFT, and Rembrandt collaborated harmoniously; there was weekly, and later even daily, communication to steer the entire process effectively. Developments in Ukraine added extra tension; how would the agro-food market evolve?

Ultimately, despite uncertain economic conditions, we successfully found an excellent buyer in Sudzücker/Beneo. Rembrandt impeccably prepared Meatless for the sale.

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