KCP-backed MBO of educational caterer is Deal of the Month
THE transaction which saw equity house Key Capital Partners (KCP) back the £11m management buyout of specialist educational caterer Alliance in Partnership (AiP) with a £5.2m investment has been chosen as our Deal of the Month for April.
The deal, led by Birmingham-based managing partner Owen Trotter and investment director Richard Thomas, will enable the Oldbury company to accelerate its growth plans within the education catering sector.
KCP has acquired a majority stake in AiP, with senior debt facilities being provided by Ian Mansell and Ian Howey from the Yorkshire Bank acquisition finance team in Birmingham.
The deal, negotiated by David Neate of Birmingham-based boutique advisory firm Springboard Corporate Finance, has backed managing director David Weller and his team, and will support the company’s plans to expand its contract portfolio.
Established in 1998, AiP is one of the leading specialist educational catering providers, operating more than 170 school catering contracts and feeding more than 35,000 pupils a day across central England and West London.
The company, which has sales of more than £14m and employs more than 800 people, supplies freshly cooked meals to primary, secondary, academy and specialist schools within the state and independent school sector.
The M&A team at accountancy firm BDO was the lead adviser to the selling shareholders at AiP. The deal was led by Satvir Bungar.
KCP was advised on the transaction by corporate lawyers Peter McLintock and Ryan Hawley of Mills and Reeve. Roger Penney of RPL provided commercial due diligence on the transaction. Keith Spedding of Shakespeares advised the management team at AiP and David Doogan at Pinsent Masons advised the Bank. Baker Tilly provided financial due diligence services.
Explaining the choice, TheBusinessDesk.com editor Andy Coyne said: “This transaction has all the elements we are looking for when choosing our Deal of the Month.
“It is an MBO and, although the deals market has picked up, we haven’t seen enough of those and getting fresh or re-invigorated management teams into companies is vital for the future of the regional economy.
“It is a Midlands-based company that has done extremely well in a crowded field that throws up huge logistical challenges.
“And it is a Midlands-backed and advised transaction with a plethora of local firms bringing their expertise to the table to ensure the deal got over the line.
“Well done to everybody involved.”
