Blackstone takes segment of confectionery firm Tangerine
GROWTH Capital Partners has sold its 40% stake in Blackpool-based confectionery firm Tangerine to US-based private equity giant Blackstone.
Growth Capital, which is owned by entrepreneur Luke Johnson, took a 40% stake in Tangerine following an £8m buyout from its former Danish parent company Toms Gruppen in January 2006.
The sale price to Blackstone has not been revealed, but Growth Capital said that it has received a return of 4x its original investment.
Since the management buy-in deal was completed from Toms Gruppen, Tangerine has added two other confectionery businesses to its portfolio – snapping up Burton’s Confectionery in 2006 and Monkhill Confectionery from Cadbury’s Schweppes in 2008. It has also quadrupled sales from £40m to £160m.
The company produces the Butterkist popcorn range and sweets such as Sherbert Dib Dabs, Mojo chews and Anglo Bubbly. It employs more than 1,340 people – 400 of whom work in Blackpool, although it also has sites in Liverpool and four factories in Yorkshire at Cleckheaton, Pontefract (x2) and York.
Tangerine Confectionery chairman, Steven Joseph, said: “I am pleased to report that Blackstone, one of the world’s leading investment and advisory firms, has taken over from Growth Capital as Tangerine’s financial partner.
“Growth Capital have been a fantastic support to Tangerine Confectionery since the company’s creation in 2005, helping us to become Britain’s largest independent popcorn and sugar confectionery manufacturer.
“Our new partners have invested in 150 businesses in the last 25 years, including organisations such as United Biscuits and The Merlin Entertainment Group. We believe Blackstone are the right people to help us achieve the next phase of our ambitious growth plans.
“They are very supportive of our business strategy in these challenging economic times and so it will be ‘business as usual’ within Tangerine.”
Accountancy firm KPMG provided vendor due diligence and tax advice to the management team.
