The Redbridge secondary MBO is still subject to 90 per cent shareholder approval at an extraordinary general meeting scheduled for late September.
Denis Punter, Redbridge ceo told freshinfo that the buyout means the company is acquiring the equity holding taken by venture capitalist 3i in 1995.
"The group is pleased to announce that with the support of HBOS, our bank since 1995, we have been able to move to the next statge of our business development," he said. "And although management will acquire 3i's equity holding, 3i will continue to have investment in the group providing funding."
The secondary buyout has been the subject of discussion between 3i and Redbridge for some time. "When 3i came on board I said they would be involved for about 10 years. We started talking over buying out their share about two years ago and it has come as a result of mutual understanding."
Since the group was formed, it has increased turnover from £100 million to £230m largely through significant acquisition, first of importer Frumar at the outset and latterly operations such as AFI. It has also made significant investment, most notably in the berry-breeding business Redeva launched a year ago.
Meanwhile, the group's acquisition of AFI was completed this week when the soft fruit division moved out of its Paddock Wood premises and into Redbridge Produce Marketing headquarters at Tolworth, Surrey. The two businesses are now combined as Redbridge AFI under the leadership of Richard Parke-Davis as managing director although Graham Blake, who held the position jointly, remains in charge of soft-fruit.
With the closure of AFI's Kent facility, Redbridge AFI has linked up with salads supplier Stubbins to "share in the benefits of its modern facility and services" for soft-fruit packing at storage at Waltham Cross, concluded Punter.
No comments yet