Purity Soft Drinks is Deal of the Month
THE Deal of the Month for May demonstrated both the industriousness of local advisers and the appetite for private equity firms to back well run local businesses.
Wednesbury’s Purity Soft Drinks – founded more than 100 years ago – was acquired by Langholm Capital, the consumer sector mid-market private equity firm, as part of a management buy-in transaction which sees Garry Nield appointed at the new CEO. The sum involved was undisclosed.
The company was first established in 1892 when it began supplying soft drinks by horse drawn dray to the licensed trade in and around the Black Country. It has been run by the Cox family since 1944, producing a range of fruit juices and soft drinks for retailers including its main Juice Burst brand.
Hawkins Hatton, the Dudley-based law firm, provided lead advice to the Purity Soft Drinks’ family shareholders. Following the deal Mike Cox will continue as production director, retaining a shareholding in the business, with Tim Cox retiring as managing director and his responsibilities being picked up by Garry Nield.
Nield has extensive experience in the wholesale sector having previously worked as CEO of Red Mill Snacks. He has been working at Purity for the last four months and together with Mike Cox will continue to drive Purity’s growth strategy backed by new investment from Langholm.
Colin Rodrigues, corporate partner at Hawkins Hatton, said: “Purity has developed a strong proposition for its wholesale customers and consumers and we were delighted to work with the Cox family to help bring about a successful sale which marks a new era for the company.”
HSBC’s Birmingham office provided the debt package for Langholm Capital.
TheBusinessDesk.com editor Andy Coyne said: “Hawkins Hatton is one of the busier advisers on our patch. Rarely does a month go by without news of a couple of transactions with which the firm has been involved.
“Indeed in May it was also at the centre of the deals involving Nautic Steels and Greenwell Gleeson.
“Purity Soft Drink is a traditional, family run business that continues to make products that people like. The new investment from Langholm Capital will give the new management team the funds they need to take the business on to another level.
“And during a period when foreign takeovers seem to be the norm, this is one business that will be managed and controlled from right here in the Midlands.”
