Private equity house LDC has backed a secondary buyout at the maker of Wall’s sausage rolls and Pork Farms pork pies, providing an exit for former backer Vision Capital.
Addo Food Group, previously known as Pork Farms, is headquartered in Nottingham and produces almost 290 million chilled savoury pastry products each year. It was acquired by Vision Capital in 2007.
LDC has invested in the business alongside private investment fund Fullbrook Thorpe, which is backed by the former owner of Clinigen Andy Leaver. The cash injection will support Addo’s growth plans, which include product development and expansion into new markets via organic growth and acquisition.
Addo will continue to be led by its existing management team, headed by managing director Chris Peters.
As part of the deal, LDC’s head of new business Andy Grove will join the company’s board alongside LDC investment director Victoria Marcer. Paul Monk, who has worked for Mars, Golden Wonder, Finsbury Foods, Quorn and Burton Biscuits, will also join Addo as non-executive chairman.
Peters said: “We are very excited about our partnership with LDC, to help us further unlock the potential we see in the market.
“LDC has really bought into our vision and plan, and the whole Addo management team is looking forward to working with our customers, our employees and our investment partners to deliver the next exciting phase of our growth story over the coming months and years.”
Grove added: “The UK’s chilled savoury pastry market continues to grow at a steady pace, driven largely by consumer loyalty to much-loved brands and indulgent products. Over its long trading history, Addo has continually demonstrated its ability to evolve and adapt, maintaining its market leading position through a clear focus on product innovation and high quality product ranges.”
Catalyst Corporate Finance acted as lead adviser. Eversheds in Nottingham acted as legal adviser to LDC, while Deloitte in Birmingham provided tax advice. Browne Jacobson in Nottingham acted as legal adviser to management.
Commercial due diligence was completed by Food Strategy Associates and operational due diligence by Lauras. Vision Capital were advised on the transaction by Houlihan Lokey, KPMG and Macfarlanes.
Addo employs more than 2,500 staff at sites in Nottingham, Market Drayton, Spalding, Poole and Shaftesbury and can trace its roots back 160 years.
By Storm Rannard
Source: Insider Media
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