Planet Organic, the trendy health food chain, has been sold to Scottish private equity firm Inverleith in a deal thought to be worth around £15 million.

The deal will result in a pay day for founder Renee Elliott who is reducing her holding in the business she founded in 1991.

Inverleith said that it will now look to double Planet Organic’s existing seven-store London footprint over the next five years.

It represents the latest deal in the sector, following the £1.7 billion sale of Holland & Barrett to Nature’s Bounty and Amazon’s £10.7 billion acquisition of Whole Foods, both last year.

Planet Organic boss Peter Marsh
Planet Organic boss Peter Marsh (PA)

Inverleith chairman Ben Thomson said: “This is an interesting time of change for the high street with shoppers wanting more community-based shopping.

“Consumers are looking for an experience when they shop and for real knowledge about the products offered.

“They care deeply about the quality and provenance of products they buy and increasingly search for items which help them lead a holistic healthy lifestyle.”

Planet Organic has also counted among its backers former Marks & Spencer director Alan Smith, ex-Space NK chief executive David Krantz and Fenn Wright Manson founder Colin Fenn.

It is unclear whether they are offloading their holdings in the firm.

The retailer raked in £30.6 million in sales last year on operating profit of £590,000. This year the firm is on track to book revenues of £36 million.

Inverleith specialises in investing into consumer brand companies within the health & wellbeing, lifestyle and heritage sectors.

Planet Organic chief executive Peter Marsh said: “The last store we opened was on Tottenham Court Road in 2015, and the ability to now look at opening three or four new sites a year is really exciting.

“Most of our employees have been at Planet Organic for many years and are looking forward to serving wider London communities.”