Fast growing food brand looks to cook up a good deal

Yorkshire food producer, Heck, has hired corporate advisers to explore investment options.

The family-run business has brought on board Spayne Lindsay as it looks to fund a new facility at Bedale, strategic acquisitions, and further diversification into new product categories in order to maintain its rapid growth.

The business, which for Easter launched a chocolate sausage and has made inroads into the plant-based market over recent years, is being marketed to potential buyers and investors by the London advisors with all options currently on the table table from a minority investment through to a full sale.

Heck’s founder Andrew Keeble said there’d been “massive interest” already from investors.

The move Keeble told industry publication The Grocer was sparked by the need to provide an exit to its private equity backer Panoramic Growth Equity, which holds a 25% stake in the business.

Panoramic backed Heck in 2014 with a £1m investment after Keeble and his wife Debbie launched the business in 2013.

Over that time the business has grown rapidly from revenues of £3m in 2014 to £30m.

According a City source quoted by The Grocer, it is expected fellow Yorkshire food producer Cranswick along with PE firms such as LDC, Endless and Sun Capital Partners will be amongst those to “take a look at” the business.

In fact, the firm’s founders were named by LDC in its top 50 most ambitious business leaders in 2019, with Keeble noting that his ambition was for the business to reach £100m turnover, noting that the business would be at £50m by 2022.

Keeble added: “Panoramic have been brilliant and supported the business for many years, but the fund is closed and they need to exit the investment by March 2022

“We have engaged Spayne to get an up-to-date valuation and get Panoramic good value.”