Sale of part of the trade and assets of Simpson Ready Foods Limited to Malton Foods Limited

Total consideration payable: Undisclosed
Turnover: £4.5m
EBITDA: Undisclosed
Project duration: 3 months

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The challenge

The shareholders of Simpson Ready Foods Limited, a food manufacturer which trades under a number of brand names including Goblin and Simpsons, had reached the conclusion that they needed to find a buyer for all or part of the business. The business manufactures canned ready meals and canned sponge puddings alongside ready meals and sponges packed in pots. How could they retain shareholder value, protect creditors and transition the business to a third party whilst maintaining an uninterrupted supply into their blue chip customer base?

“Helen recognised the challenges very quickly and was able to put together a clear set of forecasts and information memorandum that presented the business in a way that allowed potential buyers to evaluate it effectively and enabled us to then negotiate the very best price”

Andrew Simpson – Managing Director Simpson Ready Foods Limited
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The solution

Having diagnosed the challenges faced by the business, a fast track process was designed to reach completion within a demanding timescale. Having developed a financial model and information memorandum, industry knowledge led to quickly identifying a number of acceptable prospective bidders, who were approached confidentially. Against a demanding timetable several offers were received and building on the further financial and commercial information provided, a preferred bidder was selected. Heads of Agreement were agreed and a period of exclusivity was granted to allow due diligence to be undertaken. During this period Helen developed a transition plan to allow both the buyer and the seller to agree how the manufacturing supply could be transitioned effectively from one party to the other. She also extended the financial model to help inform the directors and shareholders of the likely long term outcome for the company once the deal had concluded.

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The outcome

Because of the specific benefits available to them by acquiring certain Simpsons’ product lines and brands, it became clear that Malton Foods was the most compatible buyer for this side of the business. The trade and assets were sold to them as a going concern, with the transaction concluding less than 3 months from the initial discussions. Another buyer was also found for the remaining assets on the canning side of the business.

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Contact us

Marcus Moir: +44 (0) 7711 078458
e: marcus.moir@mintonquinag.com

Helen Halsall: +44 (0)7795 566260
e: helen.halsall@mintonquinag.com