Partner Article

Management buy-out at £100m turnover family firm

Family-run cash and carry, Hancocks, has been sold in a management buy-out (MBO) led by the company’s chief executive, Mark Watson.

The business, which is based in Loughborough, was ran by brothers Andrew and Adrian Hancock, who will now hand over the 50-year old company after the deal was backed by H2 Equity Partners.

Advisory firm BDO’s Andy Harris and Richard Rose from the Birmingham office gave guidance to H2 alongside DLA law partners, Jonathan Watkins and James Kerrigan.

The MBO transaction was carried out by H2 using debt and mezzanine finance from Investec to secure a deal for business.

The equity partners hope to establish an even stronger foothold in the market for Hancocks, which has a current turnover of £100m.

Eversheds, PwC and Cavendish Corporate Finance acted on behalf of Hancocks’, Mark Watson and the remaining management team in the sale.

After the sale, the firm hopes to expand its national depot network and develop its branded and own label ranges, with further ambitions to grow activity online.

Mr Watson, who will continue as chief executive, commented: “I am delighted to be leading such a strong company that has the prospect of becoming a much bigger player within confectionery wholesaling.

“We have some exciting plans and opportunities to take the business forward with H2 at the helm.”

Former owner and Chairman, Andrew Hancock said: “This can only be great news for our customers, employees and suppliers.

“From a sweet shop in Shepshed, our family has grown the business to a group that serves many thousands of businesses with their confectionery supplies.

“We now hand the baton on with pride, knowing that Hancocks can only go from strength to strength.”

This was posted in Bdaily's Members' News section by Miranda Dobson .