MBO of an organic food business
the challenge:
Abel & Cole is the UK’s leading supplier of home delivered
organic food, offering a comprehensive range of meat, fish, dairy
products, groceries, fresh fruit and vegetables. We were asked to
advise on a management buy-out of the business, involving multiple
parties and a significant investment by a private equity house.
our approach:
The client is well known to us, as we have advised them for a
number of years on the organic supply chain and consumer issues
facing the business. As a result, we had a good understanding of
their key objectives for the deal. We spent a considerable amount
of time co-ordinating and advising on arrangements between the
various parties to the deal, ensuring that the documentation
properly reflected our client’s objectives. We also co-ordinated
the due diligence process for the business.
the result:
The deal completed within a relatively short period of time;
external funding obtained from the private equity house to help
with future development of the business; the management team have
been incentivised through the transaction.