Vegan Food Group has entered into an agreement to acquire Tofutown, a German tofu manufacturer with €60 million in revenue.

The latest acquisition is Vegan Food Group’s first since it was rebranded as a new development out of its initial company, VFC Foods, founded in 2020 by Veganuary co-founder Matthew Glover and chef Adam Lyons.

Vegan Food Group’s portfolio, which also includes the VFC, Meatless Farm and Clive’s Purely Plants brands, already has 80 SKUs in the UK and EU across 21,000 distribution points.

In a statement shared on LinkedIn, Vegan Food Group’s chief mission officer Glover said that the combined entity will be positioned for profitability in 2024 with a “clear line of sight” for scaling group revenues beyond €100 million following the Tofutown deal.

Tofutown was established over 40 years ago and is a supplier of 100% natural organic tofu, spreads and meat alternatives in the EU, predominantly in Germany where the company is based.

Headquartered in Wiesbaum (North Rhine-Westphalia), it supplies major retailers such as Aldi, Lidl, DM and Edeka under the Tofutown brand.

Its two manufacturing sites, spanning 55,000-square-metres in total, produce a wide range of new plant-based products, with its Lüneburg (Lower Saxony) site becoming one of Europe’s largest plant-based manufacturing facilities.

Dave Sparrow, CEO of Vegan Food Group, said: “VFG will now be a major player in plant-based food, with a significant manufacturing scale across three sites, employing over 300 staff, and with a strong network of strategic manufacturing and supply chain partners”.

He added: “This acquisition allows VFG to fast-track our growth across the UK and the EU in chilled, frozen, and ambient products, in both branded and own label retail, as well as foodservice”.

Markus Kerres, CEO of Tofutown, said that joining Vegan Food Group will be an exciting opportunity to successfully continue Tofutown founder Bernd Drosihn’s vision in the coming decades.

He commented: “With Germany and the UK being the two biggest markets for plant-based foods, we’re well-positioned to thrive over the next decade”.

Vegan Food Group has entered into a purchase agreement to acquire all shares of Tofutown. Completion is subject to final approvals but is expected to happen soon, the companies revealed.

KPMG conducted the financial due diligence, while Addleshaw Goddard provided legal advice.

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