SME fund steps in to save West Cornwall Pasty Company with maiden investment
More than 200 jobs have been saved after Enact, the £7.5m SME fund launched by Leeds-based private equity house Endless, agreed to buy 35 West Cornwall Pasty Company outlets and stores, together with the brand, following the appointment of administrators over the company.
The investment in West Cornwall Pasty Company is the first completed by Enact and comes just three months after the fund’s launch. Enact has been supported in the transaction by Sankaty Advisors.
Enact has ambitious plans for the business with significant capital to be invested in refreshing the brand, product innovation and investment in the store estate, including the opening of new stores at strategic locations.
Chris Cormack, investment director at Enact, joins West Cornwall Pasty Company’s board and will support its existing management team. Enact is also in advanced discussions to appoint an experienced executive chairman to the company to shape and execute the new strategy.
“This deal marks an exciting new chapter for West Cornwall Pasty Company,” said Mr Cormack. “The business has struggled to cope with the effects of the pasty tax and a number of underperforming outlets.
“Fundamentally, West Cornwall Pasty Company is a market leading brand, loved by millions of customers and we are delighted this transaction takes the brand and business forward whilst preserving more than 200 jobs.”
Enact was launched earlier this year to fill a gap in the market for SMEs that are struggling to access funding from the banking sector in the current market. Enact looks for SMEs with robust business models that are facing operational or capital constraints.
Mr Cormack added: “The Enact fund’s capital is sourced from a collection of extremely successful entrepreneurs and professionals. This unique feature of Enact enables us to harness decades of retail and brand experience to support our plans for West Cornwall Pasty Company.
“We’re in advanced discussions with a number of other businesses and are hopeful of announcing further transactions shortly. We’d also be delighted to speak to other SMEs that would benefit from investment from Enact.”
Enact was advised by Simon Pilling and James Cook of Gordons.
