£60M acquisition of chilled food distributor NFT

22-Apr-2014 - Last updated on 23-Apr-2014 at 10:15 GMT

NFT was formed following a management buy-out of the business from Northern Foods in 2006

Chilled food distributor NFT has been snapped up by private equity investor EmergeVest in a deal valuing the business at more than £60M.

NFT claims the move, which includes £43M of integrated debt funding from Investec Growth & Acquisition Finance, supplies a cash injection that prepares it for the next stage of growth.

The transaction represents the purchase of the entire shareholding of NFT’s original private equity backer Phoenix Equity Partners. EmergeVest has confirmed NFT’s current management team will remain with the company and retain a significant shareholding themselves.

Sales increase

Since the management buy-out of NFT from Northern Foods in 2006, the business has seen sales increase 49%, from £114M to £170M in the year to March 2014. The company runs seven UK sites at which it employs 2,000 full-time staff and has its head office at Alfreton, Derbyshire.

“We have been diligent in our search for a new investment partner and are really pleased to be working with EmergeVest, who have exhibited a great understanding of our market and a passion to help NFT fulfil its potential,” said NFT ceo David Frankish.

“They are keen to back management’s plans for growth based on innovation and continuous improvement to our service offering delivered by a highly skilled workforce and leading edge systems.

“With the additional financial backing of Investec, I am confident this deal is great news for our customers, employees and the wider logistics environment.”

‘New overseas markets’

EmergeVest md Heath Zarin added: “We believe the company is well-positioned to expand its service offering within the UK and to enter new overseas markets. We have been very impressed by management’s ability to execute and their plans for developing the business further.”

Richard Daw, partner at Phoenix Equity Partners, commented: “We wish David Frankish and the management team every success in the next phase of the company’s development under their new ownership.”