Pies the limit as duo buy bakery businesses

Two entrepreneurs with an established track record in the food industry have acquired the southern division of bakery business McCambridge Group Holdings Limited. The Manchester offices of DTE Corporate Finance advised D&G Food Group Limited on the acquisitions, with invoice and asset based lender, Venture Finance providing the funding.

The deal gives D&G Food - owned by Graham March and David Fearnley-Brown - control of five bakery businesses with operations stretching from Derbyshire to the South West. Aldreds the Bakers, WR & SW Hussey, Queen of Hearts (UK), Tredinnick Fine Foods and West of England Bakeries between them employ 300 staff in and have a combined turnover of around £17m.

Graham March was chairman and managing director of Holland's Pies for 20 years until 2005 and most recently held the same position at Northwich-based bakers Frank Roberts & Sons. David Fearnley-Brown is an independent consultant who helps food companies to improve their profitability and whose clients have included Northern Foods, Grampian Foods and Frank Roberts & Sons.

Graham and David commented: "We are really excited about this turnaround opportunity and are confident we can return the businesses to profitability within the next three years with the right direction, level of management attention and the support of our funders, Venture Finance."

Matt Beckley, partner at DTE Corporate Finance, added: "This was an extremely challenging but rewarding transaction. The DTE team worked with the Management Buy In team from inception to completion on the turnaround nature of the business plan and addressed the needs of the various vendor stakeholders, as well as meeting the funders' requirements. Completion demanded great cooperation and teamwork amongst the management team and its advisors."

Jon Close, corporate partner with DWF said: "The deal is really good news for all involved, particularly the employees, suppliers and customers of the five businesses. It was a great team effort on all sides of the deal which needed to happen in a tight timescale. With Graham and David's complementary sales and operational experience they make a very effective team."

Cyril Ryder, regional manager with Venture Finance comments: "D&G Food have an encouraging business plan and the necessary acumen and ambition to make it a success. We were more than glad to provide funding for the deal. The invoice discounting facility will deliver immediate working capital for D&G's management team during the often-difficult post acquisition phase, as well as the long-term financial support to drive future growth."