
Rutland buys Hereford Contract Canning
Rutland Partners has secured a majority stake in drinks canning business Hereford Contract Canning (HCC).
The business was sold via an auction process that included both trade and private equity buyers.
Rutland invested via the Rutland Fund III vehicle, which closed on £263m in 2015. HCC is the fund's eighth deal. The vehicle targets companies valued at between £20-150m, with Rutland committing between £10-50m per investment. The vehicle also has a co-investment option for LPs, enabling them to invest up to £50m per deal. The fund was 61% deployed as of September 2018, according to Unquote Data.
Rutland is bringing on board Julian Aitken as CEO and Robert Leechman as non-executive chair for HCC. They will work alongside the existing team and the founders of HCC, John Hibberd and Paul Burton, who will remain shareholders. A new long-term finance director is also in the process of being recruited.
The GP is planning to implement a capex-led expansion for the business, with further investment planned to increase HCC's canning capacity. This is in reaction to increased demand partly fuelled by the move away from plastic products in favour of metal cans, Rutland said.
Company
Based in Hereford, HCC is a contract canning company, focusing on small- to medium-sized batch runs of drinks with complexities in mixing, blending and canning. It cans both alcoholic and non-alcoholic beverages.
HCC posted a £18.3m turnover and £1.3m profit before tax in 2018.
People
Rutland Partners – Nick Morrill (managing partner); David Wardrop (partner); Gessica Howarth (investment executive).
Advisers
Equity – PwC (corporate finance, financial & commercial due diligence, tax); FRP Advisory, Tom Cox, Andy Dimmock, Dave Edwards (debt advisory); Taylor Wessing, Ed Waldron, Mark Brewer, Jonny Bethell, Suzy Penney (legal); Chartwell, Andy Redfern (operational due diligence); Ramboll, Sophia Passmore (environmental due diligence).
Vendors – Adam Street Advisors, Andrew Barnsley (corporate finance); Acuity Law, Phil Pugh, Steve Berry, Tom Saunderson (legal).
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater