Seneca Partners’ EIS growth capital investment team has realised a net tax free return of around 3.3 times from its investment in Foodpack, the St Helen’s based specialist food manufacturing and packaging business it saved from Administration.
The company has been sold to Integrated Packaging Services.
It was three years ago that Seneca saved Foodpack from Administration in a £7.5m deal.
Tim Murphy of Seneca (left), who was a Director of Foodpack throughout the investment, said: “Making a success of a business bought out of Administration is notoriously difficult and involves many highs and lows along the way. Bringing Foodpack back from the brink and turning it into a high quality operation has been a great result for our Investors and all stakeholders, not least the 150 colleagues who work in the business but also the wider community of St Helens that benefits from those jobs being secured.
“The management team supported by their colleagues and led by industry veteran Anthony Hitchen, who Seneca introduced to the deal, have worked tirelessly to transform the business from an operational and financial
perspective.
“As a result, Foodpack continues to go from strength to strength and we are delighted to be passing it on to a high quality operation such as IPS which is perfectly positioned to take it forward into its next
growth phase.”
Anthony Hitchen, Chairman, who will leave the business following the sale, added: “This dramatic turnaround has happened due to a lot of hard work by many individuals but notably the committed and dedicated staff at Foodpack Ltd. It is reassuring for them to have such a reputable company to further develop the business.”
Andrew Dawson, CEO of IPS commented: “IPS is committed to growth and this acquisition presents a natural step on our journey. We have been aware of Foodpack and its success over the past three years. The business has a great reputation, an excellent location and massive scope for further growth.”
