Investment firm S-Ventures has announced its acquisition of Hero UK, trading as Juvela, from the Hero Group.

Juvela is being acquired for a consideration of £8 million cash and 5 million new ordinary shares in UK-based S-Ventures. The company manufactures and distributes gluten-free products under the Juvela brand, including bread, flour mixes and pasta, which are sold in the UK retail and pharmacy markets.

Scott Livingston, founder and CEO of S-Ventures, commented: “We are delighted to add the Juvela business to our platform. We welcome Hero Group as new shareholders and are excited about the opportunity this acquisition brings to drive substantial growth and value for all our shareholders. It has been a pleasure working with Hero on this transaction.”

The 5 million shares issued to the Hero Group as part of the consideration will represent 3.8% of S-Ventures’ enlarged share capital. As a result, the Hero Group will become a new shareholder and partner in S-Ventures.

Rob Versloot, CEO of the Hero Group, said: “We are very pleased to have found an ideal home wher Juvela can grow to its full potential alongside other similar companies. The divestment is part of our company’s long-term strategy and supports the Hero Group’s focus on its core categories of baby and toddler food and snacks, healthy snacks and natural spreads.”

S-Ventures has also entered into new loan facilities, which include a four-year-term loan of £5.5 million and a £500,000 revolving credit facility. The company says that these will provide funding for the acquisition and for working capital needs.

The cash consideration will be split into £6.5 million upon completion and £1.5 million deferred plus 8% interest, payable in September 2023.