News: MBO at Rotherham's Livefoods Direct

Livefoods Direct Limited, the UK's leading breeder of mealworms for the wild bird market, has been bought by its management team in a Management Buy-out (MBO).

The Rotherham based company supplies its products to pet food shops and garden centres across the whole of the UK and into mainland Europe. It has a turnover of £3 million and employs 40 people.

Based on the North Anston Trading Estate near Dinnington, Livefoods Direct breeds a minimum of 9 million mealworms, 2.5 million crickets, 110,000 locusts and a broad range of other species each week.

The management team consists of Dean Jackson who has become Managing Director and Steven Evans who has become Operations Director. Dean has worked in the business since 1996 and the MBO sees him realise a long-standing ambition to acquire the business. The vendor Barry Hammond founded the business in 1981 and he will continue with the company as a consultant.

John Longstaff of BHP Ingram Forrest advised Mr Hammond on the sale as well as conducting the fund raising exercise required to finance the transaction. The deal was funded by mortgage and senior debt facilities provided by Yorkshire Bank South Yorkshire Financial Solutions Centre alongside a vendor loan provided by Mr Hammond.

Nick Goulding of hlw commercial lawyers provided legal advice to Mr Hammond on the sale. The MBO team was advised by Patrick Abel of PKF and Alex Ross of Bell & Buxton.

Following the transaction Barry Hammond said: "Having developed the business over the past 30 years I am delighted to have sold it to the management team ensuring a fantastic future for the customers, suppliers and staff of Livefoods Direct Limited."

Dean Jackson added: "We are a close knit company with a committed workforce. I am sure we have their support and backing to continue the success of previous years. A big thank you to all concerned, a special thanks to our advisor Patrick Abel of PKF and solicitor Alex Ross of Bell & Buxton for all their efforts. Steve and I would also like to take the opportunity to wish Barry and Jayne a long and happy retirement."

John Longstaff of BHP Ingram Forrest said: "It was a pleasure to see this transaction through to a successful completion. Livefoods is an excellent business and I am confident it will continue to go from strength to strength."

Russell Fitzpatrick and Steve Tweedle led the transaction on behalf of the bank advised by Steve Bell of Hart Shaw and Paul Trudgill of Keeble Hawson. Russell said: "Livefoods Direct is a well managed long-standing business and we are pleased to have supported the management team in acquiring the business. Yorkshire Bank is very much open for business and keen to support successful local enterprises with the right proposition."

Livefoods Direct website

Images: bhpingramforrest.co.uk