Hancocks Group Holdings Ltd / H2 Equity Partners
Cavendish Corporate Finance LLP is delighted to announce the sale of Hancocks Group Holdings Ltd, the specialist confectionery wholesaler to a management buy-out backed by Netherlands headquartered H2 Equity Partners.
Hancocks was established in 1962 and today has 18 cash and carry depots across the UK, stretching from Glasgow to Portsmouth with turnover of some £100 million.
Hancocks sells a substantial range of ‘pick ‘n mix’ sweets under its own brand, ‘Kingsway’, in addition to its more contemporary children’s favourites and a wide range of other leading confectionery brands. Confectionery has proven to be a highly resilient sector, with consumer demand remaining strong during recent years in conjunction with the resurgence of traditional sweets.
Cavendish worked with the management team to prepare Hancocks for a private equity backed management buy-out, including assisting the team in the preparation of a detailed business plan and forecast models.
Following a competitive process run by Cavendish, H2 was selected as preferred bidder, principally on the basis of its specialist knowledge of the wholesale sector and its approach to the Hancock family shareholders. A debt and mezzanine financing package was provided by Investec Bank.
Cavendish Partner Jonathan Buxton, said;
“This truly was a sweet deal! From the outset, H2 showed an understanding of the wholesale sector and an appreciation of Hancocks and its family roots. I am delighted that we could put together a transaction which resulted in such a supportive home for the Hancocks business and the management team as well as meeting all of the Hancock family’s aspirations.
“I would also like to thank the team at finnCap Cavendish. They have done a great job in finding us the right buyer and running a smart and efficient process. Their support throughout has been excellent and combined with their commercial approach and sector knowledge, they have made great advisers for us.”
“Joe Stelzer and his team at finnCap Cavendish were the perfect partners as we navigated this exciting next step for the group. The firm’s wealth of expertise in advising entrepreneurial growth businesses, partnered with their quality of service and professionalism was invaluable and helped make this deal function as smoothly as possible.”
“This transaction is huge for our business as we look to continue our growth journey. We’re very excited to have raised enough capital from a leading impact investor to expand our market-leading position and maintain standards of excellence across all our products. We’re hugely grateful to the team at finnCap, who played a fundamental role, in what we hope, will be a very exciting growth story.”
“I would like to thank all of those involved in the process that has concluded with us ultimately choosing Neighborly as our partner going forward, those at finnCap Cavendish and our CFO Mike Bergin, without whom this would have not happened.”
Thank you to the Cavendish team for your unwavering support throughout this process. Finding a strategic overseas partner to allow me to realise my global ambition was my number one aim, and this has been achieved. In the current market the result you have delivered is exceptional.
It was a great pleasure to work with the Cavendish team again having originally worked with them when we sold Naked Wines to Majestic Wine in 2015. John, Rebecca and the team rigorously assessed the market to find the right new owner for a business with dedicated staff and suppliers and the right deal to achieve Naked’s goal of realising capital and simplifying the business.
“Jonathan, thank you to you and your team for your tremendous support and wise counsel during the process. You kept a calm head throughout and successfully charted a course to bring us to this great conclusion. David, the team and I are all delighted with the outcome as we now join forces with Cafento to build the brand to even greater heights. I would highly recommend your services!”
“The team at Cavendish went far beyond what was expected, supporting us through the entire fundraising process. I am certain that the deal with Piper would never have completed in the time frame without their help.”
Jonathan, thank you for all your help, sound advice and hard work over the last year. You very skilfully guided us through a challenging process. As well as a fantastic exit for some very happy shareholders, there is no doubt in my mind that Orlebar Brown has ended up in the right place. Your patience was rewarded!
“Cavendish worked hard and achieved an excellent result for stakeholders. I would certainly recommend their services.”
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