Sale of Phoenix Select Food Ingredients to Newly Weds Foods, Banbury
Written on 12th May 2013 by George Seward | Permalink
Having met with the owners of Phoenix Select Foods in 2009, Corporate Mergers knew of their desire to exit their business at some point in the future. We maintained a watchful eye on their progress and had seen them grow considerably over a two year period.
As a result of a similar transaction, we knew about the plans of a number of strategic acquirers that we considered may be interested in Phoenix Select Food Ingredients. We took a proactive approach and presented our ideas to the owners who agreed that Corporate Mergers should act for them.
The business was on a growth path and we recommended that although we start the process in January, we delay the launch of the prospectus until May. This gave us the opportunity to present a good set of half year accounts together with an accurate forecast for the remainder of the year during the bidding cycle. This engineered a good opportunity to achieve the price ambition, based on future earnings.
We assisted the client to plan, write and deliver presentations, reports and site visits to show the business to its full potential professionally. We also assisted in the preparation of the due diligence files for the preferred bidder.
Our experience of dealing with corporate buyers meant the timing of the sale coincided when a substantial portion of debt had been paid off.
Once a satisfactory offer had been negotiated, the sale progressed to the Heads of Agreement and Contract stages, where we were able to work with the clients, translating the many pages of legal phrases into meaningful words. It was important to ensure that our clients were not swept up in the maelstrom of legal activity, yet were fully briefed on the issues that arose in order to make timely commercial decisions relating to the sale.
The transaction was concluded 15 months after the process commenced. The clients were delighted with the outcome having realised a strategic price for their business on terms that were acceptable.
Corporate Mergers has now worked on 5 transactions in the ingredients sector, undoubtedly making us experts in this field.
From the very start of the process I found Corporate Mergers to be approachable and to possess the experience and knowledge required to be able to guide me through one of the most important decisions I have taken in my life. Help was available in all aspects of the sale and George guided me through every step of the way. Even since the sale, Corporate Mergers has been in touch to ensure all has gone to plan. In a nutshell, if you are thinking of selling your business; you need experienced, professional assistance and Corporate Mergers provides exactly that.
Robin Barry
Director, Phoenix Select Food Ingredients Ltd
Client
Phoenix Select Food Ingredients, Hull.
Deal
Sale to Newly Weds Foods, Banbury. Terms undisclosed.
Timescale
Started January 2012, completed 2013.