Liverpool sauce company Fruitapeel undergoes MBO as founder takes over

Merseyside fruit and confectionery sauce manufacturer Fruitapeel has undergone a management buy-out (MBO).

Terry and Deborah Haigh took over of the Liverpool-based company from fellow shareholders Frank and Philip Frederick.

As part of the MBO, Fruitapeel’s finance director Neil Murgatroyd has also become a shareholder.

Founded in 2006 by Terry Haigh, Fruitapeel manufactures fruit and confectionery sauces for the ice cream market, in addition to jams, preserves, purees, compotes and coulis.

The company operates from a 50,000 sq ft factory in Simonswood, northeast of Liverpool city centre, with a weekly capacity of 400 tonnes.

Four years ago, Fruitapeel entered a joint venture with food supplier Kiril Mischeff. Since then, the firm said it has invested heavily in aseptic technology that enables it to produce superior quality products with a longer shelf life.

Terry, who has been managing director since founding the business, said of the MBO: “It’s an exciting time for everyone involved in Fruitapeel and I’m delighted to be able to continue in my role as managing director and build on the company’s already great reputation to take the company forward.

“The continuous support I have received from the team at CLB Coopers over the years has been paramount and I can’t thank everyone enough for the part they have played in helping me achieving this success.”

Terry and Deborah Haigh were advised by accountancy and advisory firm CLB Coopers’ corporate finance and tax teams.

Andrew Feeke, Luke Brown and Simon Carruthers of the corporate finance team worked with Amanda Sayle and Rob Wardle from CLB Coopers’ tax team on the deal.

Andrew commented: “We have worked with Terry for a number of years, supporting him in the development of the business and in putting in place a clear plan for growth.

“We are delighted to have been able to work with him through this transaction, which will put the company in the ideal position to exploit a wealth of new market opportunities.”

He continued: “We have no doubt Fruitapeel will continue to be a great success under Terry’s ownership and we look forward to working with him in what looks set to be a very exciting and positive future for the business.”

Allied Irish Bank (GB) provided senior funding and working capital facilities to support the transaction, with advice from Paul Crighton, partner at law firm TLT.

Mike Dinnell, the bank’s manufacturing senior relationship manager, said: “Allied Irish Bank (GB) is pleased to support existing shareholders Terry and Deborah with the management buy-out of Fruitapeel.

“Our appetite to provide funding support and working capital facilities to the business is driven by management’s clear knowledge and expertise in the sector. We view this as an opportunity to provide a long-term partnership with Terry and Neil in their strategy to grow the business.”

Fruitapeel’s management team received legal advice on the MBO from Debra Martin, head of corporate at law firm Geldards.

Debra commented: “We worked on this deal to successfully secure the management buy-out of Fruitapeel.

“It has been a pleasure to work with the team and we feel confident they will ensure the business goes from strength to strength under their ownership.”