LDC supports Ministry of Cake MBO

Ellie Pullen
20 May 2014

Tweet
Facebook
LinkedIn
Google plus
Send to

LDC has backed the management buyout of Ministry of Cake (MoC), a UK producer of cakes and desserts formerly owned by Matrix Equity Partners, from London-listed convenience food producer Greencore.

MoC's management team was led by CEO Chris Ormrod in the deal.

With LDC's backing, MoC plans on executing an acquisitive growth strategy by seeking out strategic bolt-ons.

The deal marks LDC's seventh investment of the year.

Debt
HSBC provided a senior debt package for the deal.

Company
Originally founded in 1865 as WT Maynard & Son, MoC was renamed when it was acquired by Ireland-based Greencore for £12m from Matrix Equity Partners in 2007. MoC is headquartered in Taunton and currently employs 250 staff.

MoC is a producer of own-label cakes and desserts for the catering, food service and wholesaling industries. It claims to produce more than 2 million slices of cake per week for its customers.

Customers include Caffè Nero, Pizza Hut, Hard Rock Café and Booker.

The company generates annual turnover of more than £25m.

People
Chris Ormrod is the CEO of MoC. LDC investment director Alistair Pendleton and investment manager Pete Latham worked on the deal and will both join the company's board of directors.

Advisers
Equity – Momentum Corporate Finance (Corporate finance); Osborne Clarke (Legal); KPMG (Financial due diligence).
Management – Burges Salmon (Legal).