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NICK BRITTON, EDITOR, GROWTHBUSINESS.CO.UK
Pasta King in management buy-in
A
supplier of pasta meals to Says Farquhar, ‘Pasta King has a and product development, not only for
schools has undergone a very strong position in secondary further growth in the education sector, but
management buy-in (MBI) for schools. We want to build on that with also to significantly increase our presence
£13 million backed by NBGI Private Equity. improved merchandising, marketing in other markets.’
Devon-based Pasta King, which serves MPEP partner Bob Henry, who was on
hot meals from “pasta bars”, has been the board of Pasta King, says the company
acquired from its incumbent management has benefited from ‘the Jamie Oliver
and Matrix Private Equity Partners (MPEP), effect’, referring to the celebrity chef ’s
which received £5.7 million proceeds for the public campaign for healthier school meals.
MPEP VCT from the sale. That represents a Adds Henry, ‘Sue Davenport has been
return of 3.2 times the fund’s original central in implementing a sales and
investment and an IRR of 47 per cent. marketing plan that helped reposition the
Pasta King’s CEO, Sue Davenport company to caterers as a credible player in
(pictured), who led the MPEP-backed the healthy meals market.’
management buy-out of the business in Bank debt for the deal was provided by
2006, is to be replaced by new MD Howard HSBC Leveraged Finance, while corporate
Farquhar and chairman Mike Cole, both of finance firm Livingstone Partners advised
whom have worked with NBGI before. Pasta King’s shareholders. ■
Alchemy Partners exits EPS
V
enture capital investor Alchemy East social housing market’, enabling it The acquisition increases Mitie’s social
Partners has sold its stake in to target ‘public sector clients who are housing business to more than £200 million
Environmental Property Services looking at “bundled” services to reduce in annualised revenues.
(EPS), a maintenance company operating in procurement costs’. Alchemy invested in the management
the South East of England. buy-out of EPS in 1999, but its stake was
EPS has been sold in its entirety to listed reduced to 19 per cent following a
facilities management business Mitie Group refinancing in 2003 that left bank HBOS
for up to £38.5 million, allowing an exit for with 43 per cent of the business and the
Alchemy as well as EPS’s management management team with 38 per cent.
team. Of the total, £35 million has been In related news, Jon Moulton, the founder
paid in cash on completion and the rest of Alchemy Partners who resigned in
is dependent on the acquired business’s September following disagreements on the
future earnings. firm’s investment strategy, is hoping to float
David Brooks, corporate finance partner his new fund, Better Capital, on AIM before
at Grant Thornton, which advised the Christmas. The fund is expected to raise
vendors on the deal, says the acquisition £100 million and will invest in distressed
will give Mitie ‘a strong hub in the South UK and Irish businesses. ■
46 BUSINESS XL
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