Member Article

Joint venture company launched between Knaresborough manufacturer and Premier Foods

A new deal bringing together a Yorkshire food manufacturer with a national firm to create a new joint venture company has been announced.

Specialty Powders Holdings Ltd has embarked on a stand-alone joint venture with Premier Foods plc to process and pack powdered beverages and desserts at Premier Foods’ Knighton facility in Staffordshire.

A team from Leeds-based Sterling Corporate Finance, led by Senior Partner Andrew Rose and Senior Manager Lyndsey Shaw, advised on the venture.

Speciality Powders is a processor and packer of dry food products and ingredients for retailer own label, out of home and major branded customers, while Premier Foods own and produce some of the best known branded food products such as Bird’s Custard, Angel Delight and Marvel.

The new joint venture company, Knighton Foods, will combine dry powder manufacturing capabilities and assets from both parties, enabling cost savings and scale efficiencies from greater use of Premier Foods’ Knighton site in Staffordshire.

In an innovative agreement, Sterling advised Specialty Powders’ MD Mike Kirby and negotiated a unique financial structure to meet the ongoing requirements of each partner, including debt funding and the securing of a £10 million credit line.

Sterling, who are based in Park Square in Leeds city centre, took a proactive approach to originating the deal.

Andrew Rose said: “This is a unique deal that we feel perfectly meets the scale and productivity needs of both Speciality Powders and Premier Foods.

“The financial and funding structure we have managed to arrange is complex, but plays completely to our skill-set and financial management background. It is a deal that creates value for investors, generates cost efficiencies and provides a platform for the future development of Knighton Foods.’’

Andrew added: ’’Now that the deal has successfully completed, we are pursuing a number of opportunities in the UK food sector as producers and manufacturers seek to match capabilities and resources and form relationships that create value for shareholders, while forming sustainable, well-structured businesses.

“Increasingly in the market there is a place for smaller, yet no less experienced boutique financiers, who approach deals with creativity and innovation, and who are able, adept and agile enough to bring those deals to conclusion.’’

This was posted in Bdaily's Members' News section by Clare Burnett .