Bluebox Corporate Finance is delighted to announce the sale of KK Fine Foods Plc (KK Fine Foods), an innovative, profitable and multi-award winning frozen food manufacturer based in Deeside to Belgian food group Ter Beke NV (Euronext: TERB). Under the terms of the deal, Ter Beke has acquired a 90% equity stake in KK Fine Foods with the existing shareholders retaining a minority shareholding. Pricing and other terms have not been disclosed.
Established in the kitchen of founder and CEO Leyla Edwards in 1987, KK Fine Foods now operates out of a modern 92,000ft² factory in Deeside and is a leading manufacturer of frozen ready meals in the UK, supplying the majority of the managed pubs, bars and restaurant chains in the UK, either directly or via wholesalers. They also supply some of the high street’s leading supermarket chains including Iceland, Aldi and Morrisons.
The company reported revenues and EBITDA of c. £40m and £3.6m respectively for the year ending 31 December 2016 and now employs over 400 staff. The initial focus of the strategic partnership will be to design and construct a second 60,000ft² manufacturing facility on the adjacent site, providing an additional £40m of capacity over the next two years and creating 200 new jobs.
Samir Edwards, Managing Director of KK Fine Foods commented:
“Bluebox’s management of the sale process was seamless from start to finish. One of the most impressive factors was their ability to access the international market, which brought potential partners from 8 different countries to the table. They managed the process expertly and delivered an outcome above our initial expectations whilst also meeting the objectives of the different shareholders. Ter Beke are the perfect partner and we could not be happier with the outcome.
I would have no reservations in recommending Bluebox to those wishing to pursue a new chapter for their business and am grateful for the quality of the advice they provided over the last year.”
Jonathan Rich, Director at Bluebox added:
“Our main objective was to identify a strategic partner who would not only provide the necessary investment to accelerate the company’s growth, but more importantly, share KK’s strong tradition in family values and business culture. From various meetings with international suitors, it was evident from the outset that Ter Beke represented the perfect home for the business. On this basis, we are delighted to have secured a deal which met the objectives of all concerned. This transaction represents an exciting milestone in the company’s development and we wish Samir and the rest of the team continued success.”