H&B Foods has been sold in a management buy-out

One of Britain’s best known cheese companies, H&B Foods Ltd, has been sold in a management buy-out after its parent company, Novel Group Ltd, went into administration.

The deal, negotiated with the help of Sussex and Kent-based EMC Corporate Finance Ltd, puts the founding management team back in control of the business less than three years after joining Novel Group.

The company, headquartered in London, is the largest speciality cheese and speciality foods wholesaler and supplier in the UK. Its customers include Harrods, The Ritz, Pret A Manger and a string of five star hotels and restaurants.

The buy-out, jointly funded by the management team and Straumur Burdaras Investment Bank, secures the long-term future of the £76.3m turnover business. The employment contracts and terms of all 300 employees will be honoured.

EMC Corporate Finance chief executive Nik Askaroff, based in Eastbourne, and Crawley office finance specialist Terry Rainback acted as advisors to the management team, helping them to negotiate and agree a major financial restructuring of the company.

Terry Rainback said; “H&B has an excellent reputation in the cheese and speciality food sector and the management team has developed an enviable position for the company which needed to be protected.

“Difficulties surrounding the financial position of the holding group were causing serious and unnecessary disruption to the trading companies and, unless corrected, could have completely undermined their operations. Working closely with the management team, we are delighted to have been able to negotiate new terms to enable the business to move forward positively.”

Sales director Simon Yorke added: “This is a hugely successful company and I believe this move will only enhance the brand and take the business from strength to strength. We have a very strong market share and will increase that with our brilliant products and first-class staff. We also believe our customers can only be reassured by the fact the company is back in the hands of the founding management team. It is business as usual.”