GastroNorth enters ‘exciting new chapter’ with management buyout

A North East commercial kitchen specialist is targeting further growth after completing a management buyout backed by six-figure investment.

Gateshead-based GastroNorth has been acquired by managing director Tim Whitfield following backing from NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).

The deal will allow Tim to establish a long-term growth strategy focused on expanding the company’s market presence, investing in its workforce and improving operational efficiencies.

It will also safeguard existing jobs, customer relationships and supply chain partnerships, while providing a platform to pursue new opportunities across the commercial kitchen and catering infrastructure sector.

GastroNorth specialises in delivering commercial kitchen projects for customers across a range of sectors, with the management buyout marking the next stage of the Gateshead company’s development.

Tim says the investment will support further innovation, workforce development and sustainable growth, while strengthening GastroNorth’s contribution to the regional economy and its potential to create new jobs.

He said: “The support we received from NEL was instrumental in making our management buyout a reality. 

“From the outset, the team took the time to understand our business, our ambitions and the opportunity ahead of us.

“The process was straightforward, professional and collaborative throughout. 

“The funding has provided us with the stability and confidence to move forward with our growth plans, invest in the business and build on the strong foundations already in place. 

“We look forward to an exciting new chapter and are grateful to NEL for supporting our vision.”

The corporate finance team at Clive Owen LLP advised GastroNorth’s management on the transaction.

It helped source the debt finance through NEL Fund Managers and supported the initial valuation and deal structure for the exiting shareholder, paving the way for the management team to take ownership of the business.

Michael Dickens, corporate finance manager at Clive Owen, added: “We are delighted to have supported GastroNorth on this important milestone in the evolution of the business. 

“It was a pleasure to work alongside the management team throughout the process to deliver a positive outcome for all parties.

“The collaborative expertise and commitment of all the professional advisers involved played a significant role in ensuring the transaction progressed smoothly. 

“Collectively, we have helped position GastroNorth for its next phase of growth, providing a strong platform for the business to build on its continued success.”

Jane Siddle, senior investment executive at NEL Fund Managers, added: “We were impressed by the strength and maturity of the business, as well as the quality of Tim’s leadership team. 

“Throughout the process, Tim demonstrated a proactive and professional approach, providing clear communication and high-quality information at every stage. 

“This enabled us to work collaboratively and efficiently together, resulting in a smooth transaction from our initial discussions through to completion. 

“We look forward to supporting Tim and the wider team as they continue to build on GastroNorth’s success.”

Legal advice for NEL Fund Managers was provided by Max Gilchrist and the team at Mincoffs Solicitors, while Gastro North was advised by Swinburne Maddison.

Max added: “It was a pleasure to support NEL as manager of the NPIF II – NEL Debt Finance Fund on its investment into GastroNorth and to work alongside all parties involved in bringing the transaction to a successful conclusion. 

“This investment demonstrates a shared commitment to supporting and strengthening the North East hospitality sector, and we are proud to have played a role in helping achieve this important milestone for GastroNorth. 

“We have thoroughly enjoyed working with the teams throughout the process and look forward to seeing the positive impact this investment will have. 

“We wish everyone involved every success as they embark on this exciting next chapter.”

Craig Malarkey, partner at Swinburne Maddison, added: "Completing a management buyout is a significant milestone for any business, requiring careful planning and collaboration from all parties involved. 

“Tim has a clear vision for the future of GastroNorth, and we were pleased to support him in turning that vision into reality. 

“The business is well positioned for its next phase of growth, and we look forward to seeing what the future holds.”

The £660 million Northern Powerhouse Investment Fund II (NPIF II) fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, senior investment manager at British Business Bank, added: “A management buyout can be a pivotal moment for an established business and GastroNorth now has the backing to take its next steps with confidence. 

“It’s encouraging to see the Northern Powerhouse Investment Fund II supporting ambitious management teams to take the reins and invest in the future or their businesses and the future of the North.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.