Snowbird Foods secures multi-million pound funding for management buy-out
Asset-based loan will enable managing directors of London meat producer to purchase firm from Karro Foods Group
Wholesale sausage supplier Snowbird Foods Ltd has announced it has secured a multi-million pound loan from asset finance lender ABN AMRO Commercial Finance to enable it to complete a management buy-out of the business.
Originally Plumtree foods, Snowbird manufactures and sells cooked frozen sausages to leading retailers across the UK, including ASDA, Tesco and Morrison’s as well as major travel and leisure companies.
The company was sold to food manufacturers J and J Tranfield in 2007 and bought out by European food manufacturers VION one year later, becoming a part of VION’s UK pork business Karro Food Group.
The opportunity for the buy-out came as VION announced it was divesting its portfolio of UK companies in 2012 following a decision to concentrate on its Dutch and German markets.
Current managing directors Philip Paul and Albert McGovern will continue running the business following the buy-out and will also retain long-serving sales director Roy Anderson.
The needed funding was secured from a variety of sources including a charge against the firm’s assets, a mortgage, an Enterprise Financial Guarantee loan and personal savings.
Albert McGovern, managing director of Snowbird, commented: “Our product standards are extremely high. We have a well-earned reputation for quality and the integrity of our products has never been questioned. It’s because of this that some of the UK’s biggest manufacturers of ready meals and sandwiches and some of the bigger brands in the leisure, hospitality and travel industries are coming to us. ”
With ABN AMRO’s commercial help, Philip, Roy and I have been given the opportunity to keep this great company thriving, and in the hands of people who are passionate about the products.”
Teresa Geraghty, business development manager at ABN AMRO Commercial Finance, added: “We worked closely with Snowbird to create a bespoke funding mix that ensured the MBO could go ahead.
“Philip, Albert and Roy are all very passionate about the business, and this funding will provide the financial footing and confidence the business needs to achieve its ambitious goals under their ownership.”