Sale of Peak Ingredients to Kerry Foods plc
Written on 30th April 2011 by George Seward | Permalink
Corporate Mergers was introduced to the owners of Peak Ingredients Ltd to assist the four separate shareholders with an outcome that was fair and equitable for all shareholders. Two of the owners were past retirement age and two were many years away from retirement and keen to remain with the business.
We were asked to present our ideas about exit routes including MBO’s and MBI’s together with trade sales. Discussions took place over a substantial period of time prior to the decision to proceed with a confidential sale process. We were instructed from the outset to ensure discussions were discreet and that no customers or employees were to be made aware of the process until the time was right for the shareholders.
Our unique insight into the ingredients market allowed us to access corporate buyers from across the world with the client settled on a shortlist of three potentially interested parties. Eventually, this was reduced to two buyers and the final decision was taken during one hectic day for the clients. There followed a period of exclusivity to allow for due diligence and contract negotiation.
The outcome was a trade sale to Kerry Ingredients Holdings, a subsidiary of Kerry plc, with a limited deferral of the consideration and limited warranties for the vendors to accept. The Vendors (our clients) received a ‘strategic’ price for their business. The two younger director shareholders were initially retained, satisfying their desires to stay and the two older directors retired on completion.
The transaction concluded in April 2011.
Corporate Mergers helped and guided myself and fellow Directors through the sale of our company. They took us through the mundane hours of presentations to show us in our best but honest light, into areas of accountancy with words and ways of operating you have possibly never heard of. We filled in pages of detail about our company, wrote up warranties and guarantees that you would never believe possible. Does it all sound too heavy? Well it is, and it will be hard work and take many meetings until that wonderful time when it will all come to fruition. You will have realised your dreams and Corporate Mergers will have taken you there, acting in your best interests at all times but always mindful that the whole world will see at some time how professionally the sale was executed.
Lewis Martin
Director, Peak Ingredients Ltd
Client
Owners of Peak Ingredients Ltd.
Deal
Sale of Peak Ingredients Ltd to Kerry Foods plc. Terms undisclosed.
Timescale
Started August 2010, ended April 2011.