
Bain merges Brakes' fresh food brands with Fresh Direct
M&J Seafood, Pauleys and Wild Harvest – three businesses hitherto part of Bain Capital's Brakes Group – will be merged with fresh produce supplier Fresh Direct to create a new company.
The new business – which will operate under the Fresh Direct name – will be jointly owned by Bain and Fresh Direct co-owner Nigel Harris. Fresh Direct managing director David Burns will become CEO of the new group.
It is unclear at this stage whether or not Bain realised part of its investment in Brakes in the deal, and how much the GP reinvested in the new group.
Bain acquired Brakes in 2007 from Clayton Dubilier & Rice (CD&R) for around €1.3bn. The GP beat other bidders including Blackstone, CVC, Cinven and trade buyer Sysco. CD&R was understood to have reaped a 3x multiple at the time.
Beyond M&J Seafood, Pauleys and Wild Harvest, Brakes comprises a range of brands active in the fresh food and catering equipment and services segments. The group employs 10,000 people and generates a global turnover in the region of £3bn.
Company
Fresh Direct is a fresh produce supplier focusing on chilled products. The company was founded in 1966 and today employs 1,000 people across seven locations across the UK. It generates sales of £200m.
M&J Seafood is a provider of fresh fish and generates a £118m turnover.
Wild Harvest focuses on seasonal fresh products such as vegetables and meat, working with UK high-end restaurants. It employs 30 people and had revenues of £6.1m in 2013.
Pauleys focuses on fresh fruit and vegetable, with 150 staff and £76m in turnover.
People
Jeff Scherer worked on the deal for Bain.
Advisers
Company (Fresh Direct) – Duff & Phelps (M&A).
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