investments


TSC Foods

Food manufacturer

July 2009

£5.7 million investment

Exited in February 2014

www.tscfoods.com

View case study

“We couldn't have asked for a better investment partner. KCP 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. ”

David Bondi, CEO | TSC Foods

The business...

TSC Foods is a manufacturer of own label and branded soups and sauces for both retail and food service. Located in Scunthorpe, the business employed c.300 people at the time of KCP's investment and had annual sales of £32 million.

The deal...

The vendors were also the Managing Director and Financial Director who had stepped back from day to day involvement in the business during the previous year. The remaining management team were keen to acquire the business with the help of a private equity backer.

KCP 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 KCP and management.

The deal was completed in 2009 during the financial crisis, KCP's strong banking relationships and track record meant we were pivotal in securing appropriate banking support for the investment.

KCP value-add...

During our investment we:

  • Introduced a high quality food industry Chairman
  • Recruited a new Managing Director
  • Benchmarked potential Finance Directors, resulting in the promotion of the incumbent Financial Controller
  • Secured debt funding during the financial crisis
  • £2 million investment in factory enhancements
  • Supported ambitious growth plans for the "Glorious!" soup range, enabling it to significantly increase penetration of major supermarkets

Exit...

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 KCP and created over £10 million of value for the management team.

Key highlights...

  • Turnover growth of 40% achieved during the period of KCP’s investment
  • The improvements made enabled TSC to double its value, creating £10 million value for the strengthened management team
  • Staff numbers increased significantly as a result of TSC’s growth, with over 100 additional employees joining the team during our period of involvement