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Acquisition from Northern Foods November 2006


Vision Capital today announced it has exchanged contracts for the proposed acquisition of a portfolio of four businesses from Northern Foods plc ("Northern Foods") for a total consideration of £160 million. Completion of the transaction is subject to the approval of Northern Foods’ shareholders.

The acquisition comprises: Fletchers Bakeries Limited (which includes the La Baguette Doree business), a leading UK supplier of bakery products to retailers and foodservice; Smiths Flour Mills, a flour milling business; Park Cake Bakeries, a leading developer and producer of cakes and desserts in the UK; and Chilled Pastry, the overall market leader in chilled savoury pastry products in the UK, which includes the Pork Farms and Bowyers brands.

The acquisition is Vision Capital's second portfolio acquisition from a corporate seller this year and marks Vision Capital's entry into the own-label and branded food production sector.  It is the second investment for Vision Capital Partners VI LP, the firm’s recently raised fund, and its parallel partnerships. In May, Vision Capital announced a substantial increase in its investment capacity from its leading international investor base, building on its leadership in the European market for portfolio transactions.

Julian Mash, Chief Executive of Vision Capital, said:

"This is our second corporate portfolio acquisition and firmly positions Vision Capital to provide strategic benefits for quoted companies divesting portfolios.  We have acquired an interesting portfolio of businesses and we look forward working with the management teams, investing in the businesses to enhance customer relationships and supporting them in realising their potential."

Vision Capital was advised by Lazard.  Debt financing was arranged, structured and is fully under-written by WestLB AG, London Branch.

Vision Capital is a limited liability partnership | Registered in England number: OC336240 | Authorised and regulated by the Financial Conduct Authority