Biscuit company agrees to management buyout
DEAL KICK STARTS MULTI-MILLION POUND INVESTMENT PROGRAMME
HILL Biscuits, a 150-year-old Manchester business, has agreed a management buyout with LDC.
The deal with the leading private equity investor will kick start a multimillion-pound capital investment programme to expand capacity and develop new products.
Hill, which has annual sales of £20m, also said it would be seeking strategic acquisitions to build further scale and diversity, as well as a new international sales strategy to accelerate growth in overseas markets.
Originally founded as a small shop in Dukinfield, by John and Sarah Hill in 1855, the company is now one of the UK’s leading biscuit manufacturers, producing more than 30-million biscuits each week for the retail and foodservice markets.
Key products include digestives, ginger nuts, custard creams, bourbons, malted milks and gingerbread men.
The company is focused on providing quality, value for money products, which are sold under the Hill brand as well as retailer private label, with key customers including the biggest discount retailers in the UK and mainland Europe.
The buyout was led by managing director Steven Wetherby, whilst LDC’s investment was led by Simon Braham, John Clarke and Ged Gould.
The investment provides an exit for the Bennett family, which originally bought the business out of Rowntree in 1980.
Steven said: “Partnering with LDC will enable us to drive significant investment into the business for the benefit of our customers, adding greater production capacity and innovative new ranges, whilst staying focused on our core offering of quality, value for money products.
“LDC’s experience and track record in the sector made them an ideal fit for us. They also quickly understood our ambition for the business and shared our passion for growth. This unlocks a whole new future for a business with a fantastic history.”
Simon Braham, Investment Director at LDC, added: “Hill is a classic example of a business with latent potential.
“The shareholders have built a great business over the years and the current management team has an ambitious vision for forward growth. We’re excited to become part of the next chapter for Hill in developing its scale, strength and success both at home and overseas’.’
The deal marks the third transaction this year for LDC’s North West team, following the £38m management buyout of Fishawack, and its multi-million-pound investment in ChargePoint Technology.