Mars agrees to acquire a majority stake in Foodspring

US-based confectioner Mars has signed a definitive agreement to acquire a majority stake in Foodspring, a Berlin-based direct-to-consumer nutrition company.

Financial terms of the transaction were not disclosed.

Founded by entrepreneurs Philipp Schrempp, Tobias Schüle and their financial co-founding partner ECONA in 2013, Foodspring’s product portfolio includes protein snacks, muesli, porridge, smart cooking solutions, shakes, supplements and a range of beverages.

Foodspring CEO Philipp Schrempp said: “We are looking forward to accelerating the growth of our business by drawing on Mars’ global infrastructure, marketing and science capabilities, as well as its expertise in quality and food safety.

“We started Foodspring because we realised that there was room to innovate the functional food category and better serve consumers for whom fitness and health were central parts of their lifestyles.”

Completion of the deal is subject to customary regulatory approvals and is expected to close in the third quarter of 2019.

Upon completion of the deal, Foodspring will be part of Mars Edge, which was established in 2017 and focuses on human health and wellness through targeted nutrition.

The addition of Foodspring to Mars Edge’s portfolio is expected to further strengthen its purpose to contribute to ‘better lives through nutrition’.

Mars Edge president Jean-Christophe Flatin said: “When we started Mars Edge, we set out to connect the food you want with the nutrition you need. Over the past six years, Foodspring has been at the forefront of doing just that.

“Its targeted nutrition business has a distinctive position and loyal consumer base in Europe. We share the same vision to improve the way people live through nutrition and together we will use Foodspring’s expertise across digital know-how, branding and food innovation to build one of the leading platforms in this space.”

For this deal, BDT & Company acted as financial adviser and Freshfields Bruckhaus Deringer served as legal counsel to Mars Edge, while Foodspring was advised by Houlihan Lokey and Lacore acted as legal counsel.

Mars noted that Foodspring will continue to operate as an independent business entity and will be led by the founders within Mars Edge. It will continue to operate out of its headquarters in Germany.