A £25 million management buyout of Woodward Foodservice has been advised in the West Midlands.
The management team of restaurant supplier Woodward - led by chief executive Ed Hyslop - is thought to have taken around 20 per cent ownership of the firm.
Previous owner Baugur and Talden Investments are thought to hold 40 per cent each.
The deal was led by Birmingham- based Catalyst Investment with the Birmingham office Lloyds TSB Commercial Finance advising the transaction and providing debt finance.
Mr Hyslop said: "Our new independence gives us greater autonomy and the freedom to make quick decisions.
"We operate in a £8.5 billion market that has been dominated by two major players. Woodward is in an ideal position to grow market share and provide an alternative, innovative and efficient service to caterers on a national basis."
The company, which supplies dough balls to Pizza Express, was originally part of The Big Food Group, which was bought by Icelandic investment group Baugur in 2004.
A spokesman for Baugur said the group believed that Woodward could benefit from the split. He said: "Woodward is a fast-growing company, although it started smaller than perhaps other companies in the group.
" We believe it has great potential as operating independently."