ICG-backed Adelie falls into administration

Deloitte has been appointed as administrator and ICG has now fully exited the business. Restructuring partner Rob Harding and Richard Hawes – global lead partner for Deloitte's managed exit services – have been appointed as joint administrators. The company will now investigate sale options with a view to concluding a transaction as soon as possible, Deloitte said in a statement.

According to Unquote sister publication Debtwire, ICG and Deloitte began exploring a new capital structure for the company in April 2020 following the loss of a major contract with Starbucks.

Trade buyers Greencore, Bakkavor and Samworths have all been listed as potential buyers for the company, according to reports.

Deloitte, Adelie and ICG did not respond to requests for comment.

Previous funding
Private equity firm Duke Street Capital created Adelie through a series of mergers and acquisitions from 2006 to 2008.

India Hospitality acquired the group from Duke Street in 2012 for £208m.

HIG acquired the company in 2014 from India Hospitality. Other shareholders JP Morgan, Goldman Sachs, Fidelity and Hayground Cove wanted to exit the business at the time. Debt for the deal was supplied by ICG and RBS.

ICG took control of Adelie in 2016 in a debt-for-equity swap. HIG Europe exited the business after the business breached covenants on the back of lost contracts with Asda and Sainsbury's, as reported by Debtwire. 

Company
Adelie, a Southall-based prepared food supplier, was founded in 2006 and employs 2,200 people. It supplies chilled food-to-go, offering a range of products such as sandwiches, salads and quiche to supermarkets, coffee shops and the food service sector.

Adelie reported negative EBITDA of -£2.38m from revenues of £248.5m for the year to September 2018. Performance had improved versus the 2016/17 financial year, with a £5.9m improvement in EBITDA from -£8.28m.

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• Topics
• Exits
• UK / Ireland
• Consumer
• Intermediate Capital Group
• Deloitte
• United Kingdom
• receivership