Acquisition of Contract Foods Ltd in Redditch by Hugli Holdings AG in Switzerland

Written on 31st January 2008 by George Seward  |  Permalink

The Industrial Foods Division of Hugli was managed at the time by Erik Linke. Corporate Mergers was introduced to Erik in the summer of 2006 in order to discuss how we might assist them with an acquisition of a UK based facility to complement their existing activities.

The acquisition brief provided was clear, detailed and very specific in terms of what was and wasn’t acceptable to the client. Following a detailed review of the market, the companies within the sector and prices paid for previous transactions, a project was initiated in September 2006.

During the 9 months that followed the client was introduced to many opportunities within the ingredients sector, none of which were ‘for sale’ at the time. We were therefore able to put our client on a ‘shortlist of one’ to evaluate these businesses. Many were rejected and offers were made on three businesses, two of which went to due diligence.

The project took an interesting development when we introduced a business previously discounted, but revisited. In the intervening time, the business focus had changed and Contract Foods (a contract packer of food ingredients and consumer products) was being marketed by Grant Thornton.

Corporate Mergers was able to present our clients’ credibility and commitment to keeping jobs in the region – an important element of the vendor’s decision making process. The deal was finally concluded in January 2008 after several weeks of detailed contractual negotiations.

George is extremely professional in his approach and his work led to the result I was looking for within the given time-frame. George is used to looking at all aspects of what good consultancy can be - unlike other consultants I have worked with in the past. One of his specific strengths is his in-depth understanding of the requirements of his customers and then his ability to deliver accordingly.

I have no hesitations in recommending George to any other company looking for an M&A consultant in his area of expertise.

Erik Linke
Industrial Foods Divisional Director, Hugli Holdings AG

Client

Hugli Holdings AG, Switzerland

Deal

Acquisition of Contract Foods Ltd, Redditch. Terms undisclosed.

Timescale

Started September 2006, completed January 2008.

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