ICG backs Symington’s in SBO

The deal is estimated to be worth £125m, according to a source close to the transaction.

ICG provided junior debt and equity and will take a 49.9% stake in the company, handing the majority stake to the existing management team, led by CEO David Salkeld.

The GP said it plans to help the company grow organically. Acquisitions may be made in the future but there are no firm plans at the moment.

Debt
The existing debt package from Yorkshire Bank was replaced by the GP's own debt provision and further funding from RBS, Lloyds and HSBC. Its value is reported to be £75m, however the GP could not confirm the figure.

Previous funding
Bridgepoint bought Symington's in September 2007 in a management buy-in. Since then, the company's turnover is understood to have increased from £47m to £150m and its EBITDA from £6.3m to £16m.

The business focused on organic sales growth combined with five small and two large acquisitions, including Chicken Tonight and Ragu from Unilever in 2011. It also re-launched Campbell's on the UK market.

Company
Symington's is a convenience food company dating back to 1827. It produces a range of products under its own brands, under licence and for private label customers. Its portfolio includes Ragu, Chicken Tonight, Campbell's, Ainslie Harriott and Aunt Bessie's.

The company is headquartered in Leeds and owns further sites in Bradford. It employs around 600 people overall.

People
Gareth Knight is investment director at ICG while Mark Stroud led the deal as director for Bridgepoint. Symington's CEO David Salkeld leads the company's management.

Advisers
Equity – Spayne Lindsay (Corporate finance); Berwin Leighton Paisner (Legal).
Vendor & Company – Rothschild (Corporate finance); Travers Smith (Legal).
Management – PricewaterhouseCoopers (Financial & commercial due diligence); Walker Morris (Legal).

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