GCP in sweet 4x exit to Blackstone

UK-based lower mid-market firm Growth Capital Partners has agreed to sell its 40 percent stake in confectionery company Tangerine to The Blackstone Group, generating a 4x return.

Financial terms of the transaction were not disclosed, but a source close to the situation put the price for Tangerine at roughly £120 million (€134 million; $193 million).

GCP backed a £10 million management buy-in of Tom’s Confectionery in 2006 before it was renamed Tangerine. The company is the UK’s largest independent private label sugar confectionery manufacturer and  increased its revenues from £40 million to £160 million under GCP’s ownership, according to a statement.

GCP closed its third fund in May on £160 million, exceeding its £150 million target. The fund was in market for 18 months.

The sale of Tangerine marks the fourth realisation from GCP’s second fund, which closed on £100 million and is fully invested. Fund II had generated 2.4x return multiple and a 30 percent IRR as of May 2011, according to a statement.

Growth Capital Partners invests in UK-based small and medium size enterprises and typically invests £5 million to £50 million. The firm invests in management buy-outs, development capital and secondary or tertiary buy-outs. GCP also “has an appetite” for follow-on investments, according to its website.