Following reports that Meatless Farm had made significant redundancies and was heading towards administration, plant-based chick*n brand VFC Foods has announced its acquisition of the company in a deal worth £12 million in sales.

VFC Foods says that today’s acquisition of Leeds-based Meatless Farm marks a crucial milestone in its growth strategy and mission to provide more vegan products across retail and foodservice.

Earlier this month, Meatless Farm founder Morten Toft Bech wrote in a letter to shareholders that he was ‘devastated and heartbroken’ at the prospect of entering administration. “We were doing well and nobody expected this … But various of our biggest investors (and new potential investors) decided not to invest further so there was little the Board or management could do despite our high growth rates, award-winning products and strong brand.”

Acquiring this remarkable brand is a testament to the hard work of the Meatless Farm team

Commenting on the acquisition, which was financed from the company’s cash reserves, VFC Foods CEO David Sparrow says: “We are delighted to announce this strategic acquisition, whilst being extremely mindful of the business’ challenges and the impact on the people involved. Meatless Farm has built strong consumer awareness, which aligns with our core values, and their exciting product portfolio enhances our existing range. By integrating both brands, we can utilise numerous synergies with valued customers and suppliers, thus driving innovation and extending customer choice.”

Co-founder, Adam Lyons, adds: “Acquiring this remarkable brand is a testament to the hard work of the Meatless Farm team, who have done an exceptional job in developing and establishing quality products. Meatless Farm aligns seamlessly with our growth strategy, and we are confident in the underlying consumer demand for plant-based products.”

The Meatless Farm brand will be retained by VFC Foods to diversify the latter’s existing portfolio.