Birmingham investment firm Key Capital Partners has backed the management buy-out of soups and sauces manufacturer TSC Foods.
In a £24 million deal supported by Yorkshire Bank, five long-serving members of TSC’s management team and new managing director, Jonathan Skofic, bought the business from previous managing director Bill Morran, and fellow shareholders. Established in 1991, Scunthorpe-based TSC produces and supplies high-quality chilled and frozen sauces, soups, entrées and dressings to the retail and foodservice markets. It is a key supplier to supermarket Morrisons as well as high-profile restaurant and pub chains, including Mitchells & Butlers, Whitbread and Tragus.
In 2008, TSC entered the branded chilled soup market with the Glorious! fresh soup range, which is endorsed by celebrity chef Marco Pierre White. The company plans to continue the roll-out of this brand across all of the grocery chains, having established a presence in Morrisons, Waitrose and Sainsbury’s.
Key Capital Partners has invested £6 million for a majority stake, alongside senior debt facilities of £11 million provided by Yorkshire Bank’s corporate and structured finance team.
The KCP team was led by partner, Peter Armitage, and investment director, Mark Buttler. Mr Armitage said: “We are delighted to be investing in TSC, a company with a reputation for excellent service, high quality and innovative market-leading products.
“With a talented and experienced management team, supplemented by a new managing director, we are confident that TSC will continue to grow and be in a strong position to take advantage of any upturn in consumer and business confidence over the medium term.”
Mr Skofic added: “The current market is an extremely difficult one in which to find investors, and in particular those with the foresight to consider investing in the foodservice industry. The team at KCP was prepared to go the extra mile, examine beneath the surface and get into the DNA of what makes TSC tick. The company’s existing management team has done a tremendous job in driving TSC to its market-leading position. With the support of KCP and Yorkshire Bank, we have the additional operational and financial support.”