Yorkshire wholesaler ‘bags’ sweet deal
YORKSHIRE wholesaler Morris and Son has acquired Accrington-based confectionary manufacturer Stockley’s Sweets saving 38 jobs and its 90-year long history.
The deal, for an undisclosed sum, sees Leeds-based Morris and Son buy Stockley’s Sweets out of administration.
The firm produces a wide range of boiled sweets, fudge, cinder toffee, Coltsfoot Rock and other traditional confectionary products.
Morris and Son said the acquisition, which was pulled together in just three days by corporate finance firm BTG McInnes, would strengthen its supply chain and broaden the range of products that the enlarged company can offer.
The internally funded deal sees an injection of working capital in addition to the undisclosed consideration paid for the business.
Founded in 1918, £2m turnover Stockley’s produces nostalgic favourites such as pear drops, chocolate limes, barley sugars as well as traditional cinder toffee and fudges.
Over the years, the company has supplied many wholesalers and retailers but it was the collapse of Woolworths last year that ultimately led to the failure of its parent company Mr Lucky Bags in September.
Andy Needham, managing director of Morris and Son, said: “Stockley’s has always been a very solid business that was unfortunately dragged into problems caused by the failure of its parent company.
“We saw a really good fit between our businesses and have been able to secure a deal with the administrators that saves all the jobs, helps us grow our business and creates more opportunities for Stockley’s too, so it’s a dream deal for us.”
This is the second deal Morris and Son has completed in just five months. In June the company saved six jobs when it bought Manchester-based cash and carry wholesaler and confectionery packing business Graham’s Cash & Carry following the collapse of the Loughborough headquartered business.
Steve Roberts of BTG McInnes Corporate Finance.”The opportunity that Stockley’s presented was very attractive and the deal makes good sense for Morris and Son.
“The management team led by Phil and Kath Lawson, the highly skilled workforce, and a well established brand and product range, are great assets. The existing strong business combined with Morris and Son financial strength, purchasing power, distribution and operating facilities, alongside many additional routes to market , should see the consolidated business bedding down very quickly indeed.
Mr Needham became the managing director and majority shareholder of Morris and Son when he bought the firm through an management buy-in in August 2003.
The company has consolidated its position as a significant operator and supplier primarily in the discount food sector over recent years and has just completed its most successful trading period yet with turnover exceeding £15m.
The business previously operated from a 80,000 sq ft wholesale warehouse and cash and carry at Cross Green Industrial Estate in Leeds and the 8,000 sq ft former Graham’s Cash and Carry facility in Levenshulme near Manchester.
The firm now employs a total of 80 staff across four sites and is actively seeking further opportunities to grow the business through acquisition.
