Gresham backs expansion of frozen food retailer Cooltrader

Gresham, the regionally-based middle market private equity house, is backing a roll-out of discount frozen food business retailer Cooltrader by the management team that built-up Iceland Group plc.

Cooltrader, which was founded in March 2001, currently has 11 stores primarily in the North West area and it is planning to open at least another 40 stores over the next four years across the UK. The funding to roll-out the stores is being provided by Gresham and the Merseyside Special Investment Fund.

The management team, all of whom have taken a financial stake in the business, include: chief executive Andy Pritchard, former FD of Iceland; non-executive chairman Malcolm Walker, former chairman and chief executive of Iceland; the buying director Andy Errington, who has 20 years experience in frozen food; property director Tim Yates, previously property director for Iceland; and store operations director Colin Watts. Steven Walker, chief executive of Individual Restaurant Company, will also join the board as a non-executive director.

Christian Bruning, who will join the board of Cooltrader, led the deal for Gresham's Manchester office working with Andy Marsh and Tim Whittard. Cooltrader was advised by Steve Stuart of the Steve Stuart Partnership and Paul Attwood of DWF. The Merseyside Special Investment Fund investment was led by Malcolm Jones. Financial due diligence was completed by Peter Dawson of Grant Thornton. James Kerrigan of DLA advised both Gresham and Cooltrader.

Cooltrader chief executive Andy Pritchard said: "This is an excellent deal that will give us a solid financial platform from which to roll-out Cooltrader to our target areas. We believe that we have identified an area of the market that is no longer being serviced adequately and gives us great potential for growth."

Gresham investment director, Christian Bruning said: "We are delighted to be backing a highly motivated management team that has an unparalleled 30 year track record of managing and growing a frozen food retailer, and a strong history of delivering value to shareholders."

The deal with Cooltrader adds to Gresham's solid track record in investing in consumer facing companies. Earlier this year, Gresham backed the buy-in management buy-out (BIMBO) of the Individual Restaurant Company to fund its expansion from its current six sites to over 15 in the next three years. In 1999, Gresham backed the BIMBO of Perfect Pizza before selling the business to Papa John Inc.