Food Buyouts Roll on in UK
The UK's Peter's Food Service, a manufacturing and food service distributor of pastry products, has been bought by private equity investors' NBGI, who paid GBP 20 million for majority ownership combined with an equity stake from the current management.
The debt, the details of which were not disclosed, was financed by Royal Bank of Scotland.
Peter's is described in the NBGI announcement of the deal as "a £53million-turnover manufacturer and food service distributor of savoury pastry products including meat pies, pasties and sausage rolls. These are sold to thousands of outlets throughout England and Wales, ranging from the major national supermarkets, to football grounds and local fish and chip shops.
"The company employs 640 staff across two divisions. The food service division has developed from a traditional van sales operation into a leading, service-orientated supplier of chilled and frozen foods with 10 sites including London, Cardiff and Birmingham. The manufacturing division produces over 100 million pastry products each year at its facility in Bedwas, South Wales."
NBGI acquired UK sandwich maker/food service provider Brambles Foods in 2003, which swallowed competitor Harry Mason 2 years later. In April this year, it sold the business for GBP 22 million - 4.3 times the original outlay - to Adelie Food Holdings, a construction backed by private equity fund Duke Street Capital. Adelie was created through the acquisition and merger of the Thomas Food Group, Buckingham Foods and Food Partners. Duke Street also owns Burton's Foods, the UK’s second largest biscuit manufacturer after United biscuits. Duke Street is thus building up a strong position in both manufacturing and ready-to-to/food service sectors.
And the buyouts roll on…