Private Equity News & Analysis

Key Capital Partners gobbles up £24m soup deal

Lower mid-market firm Key Capital Partners has invested £6m in the deal alongside debt from Yorkshire Bank and vendor loan notes. The investment in UK-based soup and food supplier TSC was made from the Key Capital’s £100m debut fund, which closed in 2007.

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Lower mid-market private equity firm Key Capital Partners has completed the £24 million (€$) buyout of TSC Foods, a Scunthorpe, North Lincolnshire-based manufacturer of soups and sauces.

TSC: £24m price tag

Key Capital invested £6 million for a majority stake in the business, alongside £11 million in senior debt provided by Yorkshire Bank’s Corporate & Structured Finance team. The remaining £7 million comprised a mixture of vendor finance and rolled-over equity considerations from the exiting shareholders.

TSC manufactures food, soup and sauce products for retail and foodservice business and its clients include UK food retailer Morrisons and restaurant and pub chains such as Mitchells & Butlers, Whitbread and Tragus.
 
Following the buyout, five members of the TSC management team will stay on to run the business and will be joined by new managing director Jonathan Skofic.

Key Capital was founded in 2006, and is investing from its £100 million 2007 debut fund. It was established by former executives from Apax Partners and Granville Baird.

Key Capital was advised on the deal by law firm Cobbetts and accountancy firm Grant Thornton.