Gresham sells Whitworths for £86m

Gresham Private Equity, the UK mid market private equity specialist, today announces that it has successfully exited Whitworths through the sale of the business to European Capital in a deal worth £86m. Over the life of the deal Gresham’s Investors have made over 6 times their investment.

Whitworths is the leading UK brand and own label supplier of dried fruits, nuts and seeds within the culinary ingredients and snacking sector. Current customers include leading food retailers, manufacturers, health service providers and leisure providers. They currently employ over 300 employees at their operation in Irthlingborough.

Since the £15m management buy-out, led by Gresham’s Birmingham office in April 2001, the management team led by David Pratt and Gary Vicary implemented a significant overhaul of all aspects of the business. This included three disposals and the 2005 acquisition of Sundora, a key competitor. A programme of brand evolution, product expansion and range extension was implemented. With the current trend in healthy-based snacking Whitworths have experienced phenomenal growth. Turnover has almost doubled since 2004.

Gresham has supported the management team in the transformation of the business from a position of receivership in 2001 to a business with strong and sustained organic growth and a highly recognised brand. With all of Whitworths’ key markets growing, the business is in an excellent position to continue to build on this.

David Pratt, Chief Executive of Whitworths comments: “European Capital along with their incoming management team has clearly recognised that the business has significant further potential through the continuing consumer lifestyle change to healthy eating. Gresham have been supportive throughout for which we are grateful”

James Barbour-Smith, Director at Gresham, led the exit adds: “This investment has never been straightforward as to buy a business from the receiver, then add in a major acquisition and make three disposals is very challenging. The management team proved to have great strength in depth to steer a course through these actions and at the same time deliver very strong organic growth. It typifies what Gresham is looking for in a business – great management teams with a clear vision for growth.” He added “We were highly impressed by the support given by the Rothschild’s team during the process. Their extensive sector knowledge proved to be a real asset.”