MBO at UK’s leading breeder of mealworms
In a transaction structured by BHP Ingram Forrest Corporate Finance, Livefoods Direct Limited, the UK’s leading breeder of mealworms for the wild bird market, has been bought by its management team in a management buy-out (“MBO”). The Sheffield based company has annual sales of c.£3 million, employs 40 people and supplies its products to pet food shops and garden centres across the whole of the UK and into mainland Europe.
The management team consists of Dean Jackson, who has become managing director, and Steven Evans, who has become operations director. Dean has worked in the business since 1996 and the MBO sees him realise a long-standing ambition to acquire the business. The vendor Barry Hammond founded the business in 1981 and will continue with the company as a consultant.
John Longstaff and Tom Roberts of BHP Ingram Forrest Corporate Finance acted as lead advisors to Mr Hammond on the sale with taxation advice provided by Zoe Roberts. In addition to advising Mr Hammond on the sale, BHP Ingram Forrest also conducted the fundraising exercise required to finance the transaction. Following a competitive process, the deal was funded by mortgage and senior debt facilities provided by Yorkshire Bank’s South Yorkshire Financial Solutions Centre, alongside a vendor loan provided by Mr Hammond.
Following the transaction, Barry Hammond commented “Having developed the business over the past 30 years I am delighted to have sold it to the management team ensuring a fantastic future for the customers, suppliers and staff of Livefoods Direct Limited. My advisors worked extremely hard to ensure that the sale to Dean and Steven proceeded smoothly and I wish them every success in the future”.
John Longstaff commented “We have worked with Barry over a number of years specifically in relation to his succession plan. By being involved so early in the process we were able to come up with a transaction structure and timescale that worked for both parties. Livefoods is an excellent business and I am confident it will continue to go from strength to strength”.