Food manufacturer Symington’s, which is headquartered in Leeds, has undergone a management buyout supported by investment firm Intermediate Capital Group.
The MBO, the se
cond by the existing management team, has been led by chief executive David Salkeld and sees the exit of Bridgepoint following five years of involvement with the Leeds-based firm.
AIM-listed ICG will hold a minority stake of 49.9% in the food company, with the existing management team taking 50.1%. The deal has been supported by Royal Bank of Scotland, Lloyds and HSBC.
Funding generated through the MBO will be used for working capital and to help complete bolt-on acquisitions.
Mr Salkeld said: “These are tough but exciting times for the grocery market, and we want be sure that Symington’s continues to play a leading role through category and product innovation and continued investment in its product and retailer brand plans.
“We are delighted to
partner with ICG, who took a different approach and have provided us with a unique financing structure which will give us a strong platform for future growth and expansion. The funding from RBS is instrumental in allowing us to pursue our corporate goals and I thank them for their support.”
Gareth Knight, investment director of ICG said: “We are delighted to be partnering with the Symington’s management team. The business has a culture grounded in entrepreneurial spirit and hard work, which has driven a strong growth trajectory in recent times.”
Mark Stroud, director at Bridgepoint, said: “Symington’s grew substantially during our period of investment, having made a number of strategic acquisitions and concluded an important partnership with Campbell’s. It is now well placed to continue growing with a new investment partner.”
Mr Salkeld revealed earlier this year how the company was considering refinancing options to raise funds for potential acquisitions from Britain’s biggest food manufacturer, Premier Foods.
Symington’s has operations in Bradford and the Aire Valley Leeds enterprise zone, employing around 600 people. It plans to expand its headquarters at Cross Green, Leeds, and is forecasting turnover growth of £50m this year to £175m.
The company has a portfolio of brands including Ragu, Chicken Tonight, Campbell’s and Ainsley Harriott. It bought the Quosh brand from Britvic for an undisclosed amount earlier this year.
Published with permission of TheBusinessDesk.com