Page 5 Page 6 Food Group Focus Food Group Focus October 2012 October 2012 www.rollits.com October 2012 Spectacular summer of sport and some tasty deals too Rollits co-hosts Food Group Focus Rollits’ food deals continued from front page… • Latin America, in particular, remains major food & Also in July, Rollits’ Corporate Partner of particular interest to global players Nasim Sharf worked with Corporate looking for geographical expansion, News bites Finance Partner Julian Wild to help with Brazil top of the South American Rollits’ client Ian McIntosh, the former drink industry Coopland & Son (Scarborough) acquire a shopping list. Vice President - West Division of 50,000 sq ft bakery in County Durham, 22 international edible oils business AAK, conference retail shops and a fleet of retail vans from • Major UK listed companies continue has become Chief Executive of Driving with their important strategic moves. the administrators of Peters Cathedral Results, the RED Driving School franchise Rollits has joined with the world’s Premier Foods managed to satisfy Bakers. The deal saw Cooplands increase business, as part of a buy-out backed by their bankers by pulling off a series of largest privately-owned, independent its retail estate to over 130 shops, as well Kelso Place Asset Management in July. disposals and Dairy Crest exited their insurance broker, Lockton, to host a as cafes, located in Yorkshire, Lincolnshire, French dairy spreads business, whilst Mr McIntosh was advised during the deal major event aimed at the food & drink Teesside and now further into the Greencore added a couple of by Rollits’ Corporate Finance Partner sector. On 23 November 2012 at North East. The acquisition resulted in acquisitions to augment its US food- Nasim Sharf and Rollits’ Head of Hazlewood Castle, Tadcaster, a panel over 200 jobs being saved. Cooplands to-go push. Employment Donna Ingleby. of distinguished speakers will address now has bakeries in Scarborough, Hull the very important issue of Crisis and Durham. • The UK cash & carry scene saw a Management and Reputation Risk in major development with Booker “The appointment of a non-executive the Food & Drink Sector. Among the Managing Director of Cooplands, Paul acquiring Makro, whilst Malcolm director to the board of a family business speakers will be Lord Christopher Coopland, commented; “This is an Walker resumed his ownership of can only be a positive influence”, so Haskins, former Chairman of Northern exciting acquisition. It has safeguarded frozen food retailer Iceland. concluded the panel at KPMG’s Forum on continues to do very well, up near 27% on Foods plc and Government adviser. many jobs in and around Durham and the Family & Business Governance on 1 May. last year. By contrast Morrisons has lost North East and will enable Cooplands to • Latest figures from Kantar Worldpanel The panel included Alastair Macphie, market share in the absence of an online Spectacular summer of sport show that the UK Grocery Market The half-day conference is aimed at Rollits’ Corporate Associate, John continue to expand beyond its existing Chairman and Chief Executive of leading offering and with few convenience outlets. has bounced back into growth at a Managing Directors, Finance Directors Flanagan, advised longstanding client boundaries. We were pleased to work Scottish bakery ingredients business level (over 3%) ahead of grocery and Risk Managers of food companies. and some tasty deals too Cranswick plc on its acquisition of with Rollits. They have provided expert Macphie of Glenbervie. Rollits’ Corporate inflation (now below 3%). Tesco, All the evidence points to more extreme If you would like to be invited, please Kingston Foods, a premium cooked corporate finance and legal advice, as Finance Partner and Head of its Food having lost market share for some weather caused by climate change, contact either Mark Evans at Lockton in After a sensational Summer of sport, it seems almost inconsequential and roast meat producer based in they did on our acquisitions of Skeltons in Group, Julian Wild, and experienced food time, has started to fight back but it is affecting major crops worldwide and Leeds on 0113 2051631 or Julian Wild at to think of anything else which has been going on over the last six Milton Keynes, which was announced in Hull, Ainsleys of Leeds and Woodheads Sainsbury’s which has shown the best industry professional, Terry Stannard, are leading to higher food prices. The latest Rollits on 01482 337304. July. Kingston’s Tony Turner and Paul in Scarborough.” progress along with the discounters. non-executive directors of Macphie. months. Amazingly enough, not everyone has been totally report from Oxfam, ‘Extreme Weather, Williams have continued in their Morrisons and the Co-op are the preoccupied by London 2012 and quite a lot has been happening Extreme Prices: The Costs of Feeding a positions as managing director and principal sufferers. Family and Owner Managed Businesses is across the food & drink sector. Julian Wild, Head of Rollits’ Food Group Warming World’, claims that the full operations director respectively. one of Rollits’ sector specialisms and the • But amidst all the successful deal- firm represents many such businesses impact of climate change on future food Information Despite all the Eurozone uncertainty In this edition we have again reviewed the stories such as Lion Capital’s investment in Cranswick, whose products includes doing, there has been the all-too- across a range of sectors, including food. prices is being underestimated and warns If you have any queries on any articles in and unrelenting gloom around the UK food & drink deals carried out in the UK, Findus Group or Duke Street Capital’s exit fresh pork, gourmet sausages, bacon, familiar evidence of food businesses Rollits’ FOMB sector team is headed by that consumers will be hit by the effects this newsletter please contact: Julian Wild economy, life has gone on and together with the most significant global from Adelie Food. Some big private charcuterie and fresh sandwiches, said: going bust. The milk industry and John Lane, a Partner based in York, who of drought and flooding, impacting on on +44 (0)1482 337304 or email transformational deals have been done. transactions, since our last newsletter and equity-owned food companies, such as [email protected] “The acquisition of Kingston strengthens retail baking have seen a number of can be contacted on 01904 688506. the price of wheat and maize. That’s not to say that there has been an we look to draw some conclusions from Iglo and United Biscuits, remain effectively Cranswick’s cooked meat production casualties and these sectors have been This newsletter is for the use of clients upsurge in small to medium-sized deals, the deals which have been completed. ‘in play’, awaiting a full or partial exit. In hit hard by the economic downturn and will be supplied to others on request. capabilities, further diversifies its which remain relatively few and far the meantime Montagu has made a and intense competition. Perhaps it is Rollits has been pleased to help and Rollits had three entrants in this year’s It is for general guidance only. It provides • It’s been an up-and-down period for the product range in a growing market and useful information in a concise form. between. Both debt and equity finance significant acquisition in St Hubert. surprising that the number of failed Great North Run from Newcastle to private equity investors who have broadens the group's customer base.” support a leading Social Enterprise Action should not be taken without are hard to come by (and expensive) other businesses has not been higher and client, the Goodwin Development Trust, South Shields on 16 September 2012. obtaining specific advice. We hope you than for the most attractive of deals. But dominated much of the M&A activity in • Major multinationals and other has largely been confined to the in raising awareness of its FareShare Hull John Flanagan, an associate in the have found this newsletter useful. many of the big international players, recent years. There have been some successful international businesses weakest players. But some business If, however, you do not wish to receive project. This scheme is part of a national corporate team, completed the run in a unconcerned about having to raise finance excellent successes, such as Lion continue to acquire across the world, Are you looking for a specialist failures, such as the demise of further mailings from us, please write to Capital’s part exit from Weetabix to often at quite remarkable prices. In this charity helping communities to relieve splendid time of 1:24:56 to finish 370th out Mrs. Pat Coyle, Rollits, Wilberforce Court, over here, have continued to invest across wholesaler DBC and dairy business Chinese food giant Bright Food and newsletter we report on yet more deals food poverty and to reduce food waste of over 40,000 starters. Also competing High Street, Hull HU1 1YJ. the world, paying some very high prices to Farmright, have hit food industry CapVest’s sale of United Coffee to by DSM, ConAgra, Ralcorp, Olam, Hain were senior solicitor Rebecca Latus, raising The law is stated as at 1 October 2012. carve out positions in the fastest growing Food & Drink Mediator? creditors particularly hard. by redistributing quality food to Japan’s UCC; but other less happy Celestial and Frutarom to name just a funds for Sue Ryder Care, and food group markets as well as in Europe. organisations working with Hull Office few of the most active. Mediation has become an increasingly important way to settle So what do we conclude from all of that? disadvantaged people. Rollits would be head Julian Wild, supporting Leukaemia & Wilberforce Court, High Street, disputes and to avoid the considerable cost of taking a matter pleased to introduce any food company Lymphoma Research.