Investment feeds growth for food firm
A FOOD manufacturer bought by its management for £24m is to embark on a major expansion plan to increase production capacity.
TSC Foods, a major producer of fresh soups and sauces for supermarkets and restaurants, is investing £2m in a new soup production plant to cook, fill and package its products in order to meet increased demand from its retail customers, which include three of the UK’s top four supermarket chains.
The investment at its facility in Scunthorpe has been funded out of the firm’s cashflow and by refinancing an existing £700,000 facility with Yorkshire Bank.
TSC was acquired by its management team in a £24m buyout, backed by the Leeds office of private equity house, Key Capital Partners last July.
Since then, sales have increased and are expected to approach £40m for 2010 after hitting £35m in 2009.
TSC presently employs 300 people from its Scunthorpe base.
As part of its growth plans, TSC expects to create more than 50 jobs over the next three months.
The company is also investing heavily in order to promote its fast-growing Glorious! range of fresh soups and sauces, which is endorsed by celebrity chef, Marco Pierre White.
Jonathan Skofic, managing director of TSC, said: ”The period following the buyout has been very exciting, with sales growth being achieved among both our supermarket and restaurant and pub customers.
“KCP has proved to be a very supportive investor, working in close partnership with us to deliver our ambitious plans for the business.”
KCP invested £6m for a majority stake in the business, alongside senior debt facilities of £11m provided by Yorkshire Bank’s corporate and structured finance team.
