Seneca Partners has backed Foodpack Limited in its acquisition of the trade and assets of Kapak Foods Limited from the administrator, FRP Advisory LLP.
The St Helens-based business is a food packing specialist that counts household names in the food and beverage sector, major retailers and contract manufacturers amongst its customers. Kapak was founded 16 years ago and reported a turnover of £17m in its most recent accounts. The consideration was not disclosed but the business has experienced difficulties in recent months, culminating in it entering administration.
The investment by Seneca, which is led by Manchester-based corporate financier Ian Currie, ensures the business will continue to trade and secures the jobs of its 150 staff. The new has also been supported with a refinancing package from Secure Trust Bank and will trade as Foodpack Limited.
Alistair Marsden and Anthony Hitchen, both experienced food industry professionals, have joined the business as senior directors and will sit on the board of Foodpack Limited.
The company moved to its current 80,000 sq. ft. food production unit in 2013 and its workforce includes product development staff, food & packaging technologists and food production professionals.
Tim Murphy and Richard Manley who worked on the deal for Seneca Partners, commented: “We’ve introduced a team in Alistair and Anthony who are respected throughout the food industry and who can drive the business forward, building on its undoubted strengths. We have every confidence in the potential to develop Foodpack in the sector. We managed to complete this transaction in a very short timescale thanks to the support of Secure Trust Bank and our legal team at Napthens.”
Alistair Marsden, whose previous roles include managing director at two food production companies in the North West, commented: “The business has a committed and skilled workforce, supported by a strong management team, which when combined with state of the art production facilities creates a strong base from which to support existing customers and grow the business. We are excited about the future for Foodpack and are looking forward to working with the existing team and customers.”
Richard Robinson, Sharon Harrison and Jane Haymes of Napthens acted for Seneca. David Green of Secure Trust Bank Plc provided working capital, asset finance and term debt.
Tim Murphy, Richard Manley, Connor Grimes and John Davies worked on the deal for Seneca.