
NorthEdge sells Bridge Farm Group to cannabis producer Sundial
NorthEdge Capital has sold ornamental plant and herb producer Bridge Farm Group to Canadian cannabis producer Sundial Growers.
The sale ends a two-year holding period for the GP, which acquired the business via Northedge Capital Fund II for an enterprise value estimated to be less than £25m.
The transaction generated a return of 2.3x gross and a 66% IRR for Northedge.
The company has increased its sales from £12m in 2016 to £15.3m for 2018, while gross profit remained at £3.8m.
Sundial intends to use Bridge Farm's facilities to start cultivating hemp and cannabis, using a phased approach.
The deal will enable Bridge Farm to extend its capabilities in growing high-quality plants to produce safe, CBD-based wellness products and supplements.
Bridge Farm CEO David Ball, whose parents founded the business in 1988, will become European president of Sundial.
Previous funding
NorthEdge backed the buyout of Bridge Farm in 2017, allowing the management team to continue investing in glasshouse infrastructure and biomass heating.
Company
Founded in 1988 and headquartered in Spalding, Lincolnshire, Bridge Farm works with UK supermarkets under the brand name Neame Lea. Its product offering focuses on outdoor plants, flowers and herbs. The business operates from five locations around Spalding. It employs 500 staff.
The company made an operating loss of £191,000 in 2018 from gross profit of £3.8m and sales of £15.3m.
People
Northedge Capital – Andy Ball (partner); Rob Freer (director); Andrew Skinner, Kevin O’Loughlin (investment managers).
Bridge Farm Group – David Ball (CEO).
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