Financing Led by Yorkshire Bank
East Kilbride-based Enterprise Foods Ltd, a leading provider of supply chain management to the retail and food service sectors, has completed a management buyout led by current Chairman Tony Moloney and Hattington Capital.
Enterprise Foods, which also has operations in Manchester, Barnsley and Kendal, helps more than 450 craft bakers and other local suppliers of products such as milk, deli items and even speciality beer, sell their goods to Enterprise’s network of 137 national blue-chip customers, supplying more than 36,000 product lines. The company delivers to 7847 delivery points across the UK every day.
The business currently employs 40 people across the UK and anticipates further growth and investment following the successful completion of a management buyout of around £30m led by Hattington Capital and supported by Yorkshire Bank.
An innovative business which connects small and local producers with large retail and foodservice buyers, Enterprise’s model enables customers with sites around the country to offer local, craft products. It also increases suppliers’ sales volumes, gives local speciality producers access to a national customer base and reduces administration costs in a supply chain which is traditionally fragmented. It also allows the customer to access products and drive sales growth in line with an ever growing consumer demand for locally-sourced products within a national food retail chain.
Enterprise Foods was founded in 1995 and in the last decade has grown to record an annual turnover of around £60m.
Yorkshire Bank has provided £14m of senior debt to aid the buyout as well as £3.5m to support working capital and ongoing growth. The deal with Enterprise Foods was led by Jane Hartley, director in the corporate banking team at Yorkshire Bank in Manchester.
The management team at Enterprise Foods Ltd, led by chief executive Tony Moloney, is now anticipating a period of further growth including new service lines, increased staff numbers and new customer relationships.
Tony Moloney, chief executive of Enterprise Foods, said: “This is an exciting time for Enterprise Foods. We have partnered with Hattington Capital and with the help of Yorkshire Bank have secured the investment required for our five-year growth strategy. The Hattington team bring significant added value to the board of Enterprise Foods because of their experience across a wide variety of industries but especially within the UK food retail industry. I am very proud of the growth the team at Enterprise have achieved over the past seven years and extremely excited about the journey ahead “
Barney Burgess of Hattington Capital said: “We are delighted to be working with the Enterprise Foods management team on what is a really exciting set of opportunities in an excellent business. The company has a very capable team as well as an established network of suppliers and customers, which we are eager to help build and develop. We appreciate the support of the strong banking partner in Yorkshire Bank.”
Owen Malton, head of corporate banking at Yorkshire Bank, said: “In recent years Enterprise Foods has grown to become one of the largest businesses of its kind. Its innovative and customer-focused approach is beneficial for both sides – the producer achieves sales and exposure through a trusted partner while the buyer is able to provide a quality product for demanding customers.
“The strong management team at Enterprise Foods has shown a real commitment to grow and invest in the business’ continued development. As we continue to see signs of economic recovery, we remain committed to supporting the growth intentions of entrepreneurial and ambitious businesses such as Enterprise Foods.
“We are delighted to work with the principals at Hattington Capital and the management team at Moloney Technologies and Enterprise Foods. This is the third transaction we have completed recently in the north west, which demonstrates the impetus in the leverage market.”