Total funding for the deal was in excess of £8million providing for future investment in expanded production facilities as well as the buy-out consideration, which was subject to earn-out.
The acquisition was completed in July 2003 from the husband and wife team who had established the business more than 10 years previously. In July 2005 Brambles acquired Harry Mason, a London based competitor, to boost its production capacity and support the strong sales growth achieved over the past two years.
Brambles Foods is a sandwich manufacturer, which is based in Middlesborough. It serves the whole UK market (and some exports). It is one of the leading sandwich suppliers to the National Health Service and to the school and university sectors.
In April 2007, NBGI PE successfully exited the investment in a £22million sale to Duke Street Capital (through their investment in Food Partner). The Sale realised a return of 4.3x the cost of investment, generating an IRR of 52% p.a.
The significant value created was a result of NBGI PE’s commitment to investing in the business and support of management’s growth strategy:
- NBGI PE brought a strong MBI candidate into the business to take over as MD from the exiting owner managers, supported by a chairman with significant food sector experience;
- NBGI PE identified and supported Brambles’ acquisition of Harry Mason, a sandwich manufacturer in the South East, which provided additional capacity and enabled Brambles to becoming a national supplier; and
- Organic and acquisition-led growth led to sales increasing threefold to £25million in less than 4 years.