GCA Altium Manchester advises on £10m investment in MuscleFood

The Manchester office of global investment bank GCA Altium has led on a multi-million pound investment into online grocery business MuscleFood.

The GCA Altium team advised the founders of the West Bromwich-based company on the £10m deal with investor BGF.

Launched in 2013 by entrepreneur Darren Beale, MuscleFood has since become a £45m-revenue business. It operates from a 32,000 sq ft distribution centre and exports to European markets such as the Netherlands and Germany.

GCA Altium MD Simon Lord, who led on the transaction with associate Andy Battersby, said: “MuscleFood has grown rapidly since inception to become an extremely profitable and highly cash generative business.

“It operates in a sector that has raised vast sums in the UK and US and it has been a real pleasure advising the founders on its first external equity investment by BGF.”

The deal is GCA Altium’s 12th in the consumer space in the last 12 months, following on from the £171m IPO of Rochdale-headquartered sports retailer Footasylum.

Darren Beale, founder and chief exec of MuscleFood, commented: “The MuscleFood team care passionately about making it easier for our tribe of customers to achieve their fitness and health goals – this mission has been critical in driving the expansion of the company.

“The partnership with BGF will help us accelerate our growth and switch even more customers on to our unique proposition.”

BGF’s Greg Norman said of the investment: “The MuscleFood team are talented, focused and passionate.

“They have successfully managed the high-growth experience in the last three years and are ambitious about accelerating the expansion. We are pleased to be supporting the group as it continues to scale.”

Richard Harding and Steven Kingham, from the Manchester office of professional services giant EY, provided vendor due diligence to the shareholders.

Kieran Toal, James Skivington and Anna Mee, of law firm Pinsent Masons, provided legal advice to Muscle Foods. Pinsent Masons’ Tim Fearn provided banking legal advice.