Exit for Atlantic Foods’ founder

The deal worth £17.5m has enabled founder Bill Hinge to realise his investment in the company

Atlantic Foods has undergone a management buy-out/buy-in sparking an exit for its founder.

The deal worth £17.5m has enabled founder Bill Hinge to realise his investment in the company which he established in 1991.

The company's managing director Edward Baker and Russell Maddock, who is joining as chief executive, have invested over £12m into the company along with 38 members of the private investor network Hotbed who have provided a further £5m plus.

Atlantic, based in Hook, Hampshire, provides sauces, accompaniments and dressings to pubs and restaurants across the UK and has developed into a £20m turnover business. Major clients include Domino's Pizza, Mitchells and Butlers and Greene King.

The company feel that it is in a position to experience further growth and says that one of its major clients, Domino's, is opening a new store every week.

Tim Lawrence, who led the investment for Hotbed, said: “Atlantic has successfully developed a menu solution niche within the food sector and its strong performance to date suggests it will be an excellent investment for Hotbed members.

“Atlantic will be run by an experienced and professional team that we believe combines entrepreneurial flair and drive with professional management experience.”

Gary Robins, chief executive of Hotbed, added: “This is an excellent opportunity for our members to invest in an established business with a solid record of profitable growth and which, most importantly in a MBO deal, is highly cash generative.”

“We are seeing an increasing demand from individual investors for direct access to MBO opportunities, which have mostly been out of their reach in the past.

“Investors are also starting to realise that MBOs can have an important part to play in a diversified private equity portfolio.”

© Crimson Business Ltd. 2007


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