HIG buys Adelie Foods

HIG purchased the company from previous owner India Hospitality Corporation (IHC), which had owned the business since 2012. IHC heads Ravi Deol and Sandeep Vyas will retain a minority holding in the company following the deal.

According to Sky News, the deal came about as other shareholders JP Morgan, Goldman Sachs, Fidelity and Hayground Cove wanted to exit the business.

It is understood HIG entered into exclusive talks in late January, after fighting off competition from other private equity firms, including Towerbrook.

The fresh funding will be used to support the company's expansion plans into Europe.

Debt
Debt for the deal was supplied by ICG and RBS.

Company
Adelie provides sandwiches to major retailers including Sainsbury's and Boots, as well as several coffee shop chains. The company also operates the sandwich brand Urban Eat.

Heathrow-headquartered Adelie generated turnover of £250m in 2014 and EBITDA of £19m. The company employs 2,800 people across six manufacturing and eight distribution sites throughout the UK.

People
Gavin Cox is managing director of Adelie. Paul Canning is managing director of HIG Europe.

Advisers
Equity - DLA Piper (Legal); Bain & Co (Commercial due diligence); Grant Thornton (Financial due diligence, tax); Canaccord Genuity (Corporate finance); Lincoln International (Debt advisory).
Vendor - Travers Smith (Legal); Rothschild (Corporate finance); PwC (Financial due diligence): Parthenon (Commercial due diligence).

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• Topics
• Buyouts
• UK / Ireland
• HIG Europe