SamCorp advised the chief executive and finance director of AIM quoted Canterbury Foods plc in a pre-packaged MBO of the group’s three non-meat divisions. The £50 million turnover group was in ‘intensive care’ with a major clearing bank. SamCorp was introduced to the senior management team with a view to SamCorp making an offer to the bank’s advisers, on the team’s behalf, for the profitable parts of the group. The team’s vehicle, Medway Foods Limited, at no time had exclusivity but its offer was accepted, subject to being able to raise the £7 million funding required and complete the deal in four weeks.
SamCorp prepared a funding proposal and flexible forecast models for presentation to potential backers. Generally, debt funders approached wanted an equity investor alongside them to meet the £7 million requirement but the timescale made this difficult. However, SamCorp approached GE Commercial Finance who agreed an asset based package topped up with a substantial cash flow loan to fund the full requirement.
After some difficult negotiations with the vendors and working closely with GE on due diligence, the buy-out, advised throughout by SamCorp, was completed with the Canterbury administrators within the prescribed timescale.