TSC Foods
TSC Foods was established in 1991 and is a manufacturer of own label and branded high quality chilled and frozen sauces, soups and meal solutions, supplying the foodservice and retail markets. In 2008, TSC entered the branded chilled soup market through its development of the Glorious! fresh soup range, which was endorsed by celebrity chef Marco Pierre White.
We couldn't have asked for a better investment partner. Key were always supportive of our expansion plans and we knew we could trust them to always provide sound, sensible advice on any issue that arose, however difficult. They were also fun to work with which is important in a long-term relationship. I would recommend them to any business owners or management team.
Working with TSC Foods...
Investment process
We invested £5.7 million to support the MBO of the business alongside £9.4 million of bank debt and £1 million from the seven members of the management team. Equity was split 50/50 between us and management.
Growth process
TSC Foods had ambitious growth plans for its own-brand soup range, “Glorious!”, looking to significantly increase penetration of major supermarkets. The growth plans required a £2m investment in factory enhancements and a strengthened management team, so we recruited a new Managing Director, promoted the incumbent Financial Controller to Finance Director and introduced a high-quality food industry Chairman. Staff numbers increased significantly as a result of TSC’s growth, with over 100 additional employees joining the team during our period of involvement. Our strong banking relationships and track record meant we were pivotal in securing appropriate banking support for the investment during the 2008/09 financial crisis.
Exit process
Having grown turnover by 40% and a doubling of value, TSC Foods was sold to Edward Billingtons & Sons in 2014 for £36 million after a number of bids had been received for the business. This represented a good return for us and created over £10 million of value for the management team.