Corporate Finance Deal Announcement: Fenmarc Produce
We are delighted to announce that our award-winning corporate finance team has advised Fenmarc and its ultimate owner, Mark Harrod, on the sale of its potato division, based at Westry in Cambridgeshire and Southery in Norfolk, to International Procurement and Logistics (IPL), a subsidiary of Asda. Plans to conclude a deal were initially announced in December and the deal formally completed in mid January. This is the second high profile deal on which we have advised Mark and his team in recent months. The root vegetable division was sold to Produce World in October 2014. The group will continue to own and run its highly successful prepared vegetable business from its Elm site in Cambridgeshire, which is the UK's largest supplier of freshly prepared vegetables.
Fenmarc’s potato division packs a wide range of conventional and organic potato varieties in a number of formats and has supplied Asda for over 25 years. The acquisition forms part of IPL’s mission to simplify supply chains and develop closer relationships with growers.
Managing director Laurence Whitehead and director Craig Chamberlain advised Fenmarc throughout the transaction, which included the hive-down of the division into a new company prior to sale. Tax advice was provided by colleagues Rachel Nutt, Alison Horner and Gareth Peters. Incumbent law firm, Greenwoods, led by Alastair Gunn, provided legal advice to Fenmarc.
Richard Anderson, Fenmarc’s managing director, commented:
“It has been great to work with Laurence and his wider team on this transaction. We appointed them because we felt they were a great cultural fit with our business, knowing when to listen and when to take charge. They understood from the outset what we wanted to achieve and helped us scope out the best way to get there. The quality of their professional advice and guidance throughout was an essential component of making this deal happen.”
Owner Mark Harrod said:
“We developed our conversations with IPL with the support of the team at Macintyre Hudson in the knowledge that our potato business was a great strategic fit for IPL. I would like to extend my thanks to the Fenmarc teams at Westry and Southery for their hard work over many years and wish them all well for this new and exciting future.”
Laurence and Craig added:
“We are very pleased that this deal will help to secure the future for Fenmarc’s potato business, its colleagues and its suppliers. It was a pleasure to assist Mark and his senior team on the transaction and we’d like in particular to thank Richard and his colleagues for all their hard work and assistance during the course of the transaction.”
If you would like to know more about this deal or how we can assist you, your clients or your contacts on corporate finance or strategic planning matters, then send us an online enquiry to arrange an initial no-obligation meeting.