BGF invests in APS Group

Kenny Wastell
20 December 2017

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BGF has provided APS Group, a UK grower and supplier of tomatoes, with growth capital funding in exchange for a minority stake in the business.

Financial details of the transaction remain undisclosed, though BGF typically invests £2-10m per initial investment.

The fresh capital will enable the business to build a new glasshouse, extend capacity at existing sites and invest in automation technology to increase efficiency.

The company has undertaken an acquisitive growth strategy in recent years, bolting on Wight Salads in 2015 and North Bank Growers in 2016.

As part of the latest funding round, BGF investor Matt Widdall will take a seat on the APS board of directors.

Company
Founded in 1949 and headquartered Middlewich, Cheshire, APS grows and distributes tomatoes to retailers including Tesco, Aldi and Waitrose.

The company has a headcount of 700 and generated a turnover of £114.8m in the 12 months ending in January 2016, according to publicly available records. APS reported an operating profit of £345,000 during that same year, though it attributed the low profit margin to acquisitions and other investments. The previous year it generated operating profits of £2.3m from a turnover of £82.8m.

People
BGF – Matt Widdall, Rhys Davenport, Paul Dolyniuk (investors).
APS Group – Mark Pearson (CEO).

Advisers
Equity – DWF, Jonathan Robinson, Will Munday (legal).
Company – Rickitt Mitchell, Neil Mitchell, Alex Wilson (corporate finance); Turner Parkinson, James Sheridan, Adrian Rogers, David Hayes (legal).