YFM backs Bagel Nash MBI

Greg Gille
03 August 2011

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YFM Equity Partners has backed the management buy-in of UK-based bakery and retail business Bagel Nash.

Deal value remains confidential but was confirmed to be at the lower end of the £5-15m range. Equity was provided by the £40m Chandos fund as well as the two British Smaller Companies VCTs. According to its latest interim statement, the first British Smaller Companies VCT invested £600,000 in the buyout.

YFM was introduced to the transaction by a member of the management team. It secured the deal after beating two rival offers in a competitive process. YFM was attracted by the company's reputation in Yorkshire and believes there is potential for it to expand into other regions.

The fresh capital will enable the company to open up new outlets in the North, North-West and Midlands; in addition Bagel Nash will look to grow its wholesale and export trade.

Debt
YFM provided a small senior debt element in-house to finance the acquisition.

Company
Established in 1987, Bagel Nash is a Leeds-based specialist bagel bakery and retail business. Its bakery operation produces in excess of 12 million bagels per year and exports its products to more than 20 countries. The retail division operates 11 coffee and bagel bars in Leeds, York, Huddersfield and Manchester.

Bagel Nash employs 130 staff and posted a turnover of around £5m last year.

People
Nigel Barraclough led the deal for YFM. Andy Micklethwaite and Sara Hildreth will become CEO and retail operations director respectively following the buyout.

Advisers
Equity – Irwin Mitchell (Legal); BHP Corporate Finance (Financial due diligence).
Management – Pinsent Mason, Peter Wood, Amy Wright (Legal).