Vision sells Fletchers to Finsbury for £56m

Vision acquired Fletchers from Northern Foods in December 2006 alongside three other businesses for a total consideration of £160m. The other brands included in the deal comprised Smiths Flour Mills, Park Cake Bakeries and Pork Farms Group.

Capital for the original transaction was drawn from Vision Capital Partners VI.

Fletchers completed a £22m refinancing deal in February this year, with ABN Amro providing a five-year banking facility. The facility represents a £4.5m increase on the company's previous banking provision.

Since the start of 2013, Fletchers has invested in a new £7m production facility in Sheffield, a £4m expansion of its Grain D'Or manufacturing facilities; and a £1m investment in cold storage facilities for its Kara brand.

In August this year, another asset bought from Northern Foods in 2006, Pork Farms, acquired the chilled savoury pastry assets of Kerry Foods to create a new company trading under the Pork Farms Group name. Oldham-based Park Cake remains in Vision's portfolio and in the year to March it generated a turnover of £117m.

Company
Headquartered in Sheffield and founded in 1895, Fletchers makes bakery products for the retail and food sectors. The group incorporates the Grain D'Or, Kara and Fletcher brands with clients including supermarket chains Sainsbury's and the Co-operative.

In the year to March 2014, Fletchers generated a turnover of £95m, down from £99m the previous year, and profits of £6m before tax, interest and depreciation. The company employs 625 staff.

People
Andrew Rich, a partner at Vision, was responsible for the firm's investment in Fletchers. Stephen Holding is managing director of Fletchers. John Duffy is CEO of Finsbury.

Advisers
Vendor – KPMG (Corporate finance).
Equity – CMS Cameron McKenna (Legal).

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