Ministry of Cake (United Kingdom) - Nov 2007

Matrix Private Equity Partners has realised 2.5x its investment from the sale of dessert manufacturer Ministry of Cake to Greencore Group. The deal valued the company at £12m and saw Matrix receive £5m in cash, equivalent to an IRR of 58% over its 26-month holding period. Matrix had originally envisaged owning the business, formerly known as Maynard Scotts, for longer, but its strong performance meant it brought it to market more quickly, hiring Livingstone Partners to run an auction process. Matrix helped to grow Ministry of Cake by bringing in a new finance director and professionalising the business internally resulting in year-on-year growth of 14%. This process transformed the Taunton-based company from a regional bakery into an international manufacturer of cakes with customers including Brakes, Hard Rock Café and Pizza Hut. The business has 200 employees and generated profits of £1.4m on a turnover of £16m in 2006/07. Bob Henry and Mike Walker led the exit for Matrix.

Previous funding

Matrix acquired Ministry of Cake in a deal of undisclosed value in 2005 (17 October 2005, page 18). Matrix invested £2.1m alongside a debt package provided by GE Commercial Finance.

Advisers

Equity - Livingstone Partners, Patrick Groarke, Tom Phipps (Corporate Finance)Equity - Osborne Clarke, James Chapman (Legal)Purchaser - Eversheds LLP, (Legal)

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• Topics
• UK / Ireland
• Exits
• Consumer
• United Kingdom
• Trade sale