A “Text Book” Sale Process of FoodBlenders to Frutarom

Written on 25th June 2015 by George Seward  |  Permalink

George Seward of Corporate Mergers met the owners, Dominic Forty and Liz Halstead at the end of 2014 to discuss exit route options, outcomes and expected proceeds. Following this meeting it was agreed to start the project during the Business’ 2015 financial year. Our sales process is proven and works, starting with assembling all the information needed; keeping this up to date as the process evolves and developing a comprehensive Information Memorandum or Briefing document.

Our Research phase was shortened because of our unique blend of experience in this narrow sector and it was agreed to go to market around Easter 2014. From there, the IM was issued, meetings held locally, followed by visits to the factory in the evenings. No members of staff were aware at this stage.

We narrowed the field down to a handful of potential acquirers from around the world and eventually Frutarom’s offer was decided as the most appropriate for the Business, the shareholders and the employees. Exclusivity was offered in August 2014.

Thereafter a lengthy period of Due Diligence, followed by legal discovery and contract negotiation took place, leading to a completion on 1st February 2015, exactly 12 months since the commencement of the project.

The outcome is documented elsewhere, but the shareholders secured an offer of around 8 times Earnings, some £2m more than the Net Asset Value of £300k and a secure contract for the retained Director.

Commenting on the transaction afterwards, Dominic Forty said, “Without your knowledge of our industry, it would not have been possible to achieve that end result in the timescale we managed, all jobs are secured and the shareholders have realised the full market value of their shares.”

For further information on this deal or on our approach to maximising shareholder value, please call George Seward on 01455 244444.
 

I was extremely impressed with how you handled the project, from the identification of potential suitors through to completion. Without your knowledge and understanding of our industry it would not have been possible to achieve that end result in the time scale we managed. All of the staff are delighted we chose Frutarom, all of their jobs are secure and the shareholders have realised the full market value of their shares.

Dominic Forty
Managing Director, FoodBlenders Limited

Client

Maximising returns for the shareholders by securing worldwide interest for Leicestershire-based Ingredients Business

Deal

Sale of Leicestershire based FoodBlenders to Israel-based Frutarom in January 2015

Timescale

Started January 2014, completed Janaury 2015

Speak to us

Call us to discuss your food business in confidence and with no obligation.

01455 244 444

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