Addo Food Group
Headquartered in Nottingham, Addo Food Group (Addo) produces more than 287 million packs of chilled savoury pastry products every year. The business manufactures a range of own brand and branded products including sausage rolls, hot pies, slices, pork pies, scotch egg products and quiches, which it supplies to the UK’s leading names in food retail including all the major supermarkets. Alongside its market-leading ranges of premium pastry products such as Tottle pork pies, Walls savoury pastry and Pork Farms pork pies, the business launched its ‘Too Good to Be’ range of gluten-free sweet and savoury pastry products last year – the first of its kind.
With a trading history that dates back more than 160 years, Addo employs more than 2,500 people and operates across six UK sites. The business was acquired by Vision Capital from Northern Foods in 2007 and traded as Pork Farms Group until 2015 when it changed its name to Addo Food Group. In 2014, the company completed the acquisition of Kerry Foods' £100m chilled savoury pastry operations. In 2017, Vision Capital looked to realise a return through a range of liquidity options including a secondary management buy-out.
What difference did we make?
Having known the business for some years, LDC asked Catalyst to advise on the buy-side owing to our experience and credentials in the food and drink market and working with management teams with a range of expansion plans. Our M&A role encompassed advising LDC on bid tactics, deal structure and entry pricing up until the point where they had won exclusivity. Catalyst then sat alongside the LDC team supporting on all aspects of the deal, project managing the transaction, challenging the vendor due diligence, assessing the commercial and financial impact of various customer plans, and preparing an exit paper to support the LDC investment case.
We also advised on raising the debt to fund the transaction, negotiating the appropriate debt package and covenants with the selected banking partner, Guggenheim.
We assisted the management team to produce a business plan supported by a detailed operating financial model to underpin the investment and banking process. In particular, the plan looked at how the business assessed a range of different growth opportunities available and a number of operational investments.
Addo Food Group