Total consideration payable: Undisclosed
Project duration: 3 months
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?
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.
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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