MBO sees MD take control of fruit and veg firm
A YORKSHIRE fruit and vegetable wholesaler has undergone a management buyout which sees the company’s managing director become its sole shareholder.
The MBO at H2H (Leeds) has been led by Ian Palfreeman who has worked within the fruit and vegetable industry for 30 years, progressing through the ranks from office junior, salesman and distributor to his current position.
Established in 2002, H2H primary activity is the wholesale of fruit and vegetables across Yorkshire and the North East of England.
Produce is collected daily from suppliers in the UK, Holland and France and delivered to its warehouse in the centre of Leeds in time for trading which takes place between 4am and 10am.
The firm operates from premises based at the Yorkshire Produce Centre in the Cross Green area of Leeds which comprises 20,000 sq ft of warehousing, refrigeration and offices.
Customers range from private individuals, sole traders, restaurants and larger catering operators.
The company currently employs 23 staff.
The deal, which has been completed for an undisclosed sum, was funded by The Royal Bank of Scotland and a structured funding package to complete the MBO alongside working capital was provided through David Smithies from RBS in Leeds.
Jonathan Grant, of Grants Chartered Accountants in Leeds, and Paul Johnson, of law firm Irwin Mitchell in Leeds, provided financial due diligence and legal advice to the parties involved in the transaction.
Mr Palfreeman said: “This MBO provided me with an ideal opportunity to consolidate the company’s ownership and look at ways in which I take the company onto the next level of growth.
“The company has a strong, well-established workforce who I have worked with for many years and I am looking forward to continuing to work with them to develop the business over the coming years.
“The firm is making good progress despite tough economic conditions and forging a relationship with RBS and the local professional advisers is already proving a sound decision. Everybody involved worked to very tight timescales to complete the transaction and I am grateful for their support “
Mr Smithies, senior relationship manager, commercial banking at RBS, said: “Despite the present economic challenges there are still local businesses that continue to perform well.
“H2H Leeds has built up an excellent reputation for quality, service and flexibility and boasts many long established relationships with customers.
“Ian is a very determined and enthusiastic individual and knows the company inside out. He can now look forward to an exciting future and build upon the business’s solid foundation.”
