News Release
Buxton Baker on the rise following family buyout
One of the UK's largest privately owned bakeries is planning further growth following a management buyout which sees control of the family-owned company pass to the third generation.
Buxton Spa Bakery manufactures own-label cakes for supermarket giants like Morrisons, Co-op and Tesco.
It also owns the Holmfield Bakery brand which it supplies to Aldi, Somerfield, Nisa and Kwik Save along with a variety of other wholesalers and retailers.
The buyout allows Chairman Peter Higgins to retire with full control of the business passing to his son and current Managing Director Mike Higgins. Peter's daughter Sarah also leaves the business having recently married in America and started a family.
The deal was led by Jeff Barber of McInnes Corporate Finance and was funded through a full asset backed lending package provided by Bob Richards at Lloyds TSB Commercial Finance.
Commercial Finance's facilities lend against Buxton Spa Bakery's sales ledger and property and are designed to provide ongoing support for the business' expansion plans.
Legal advice for the transaction was provided by Richard Capper at Halliwells.
The Higgins family have been bakers for three generations and Buxton Spa Bakeries Limited was set up on the current site by Peter, Mike and Sarah in 1992 with just 15 employees.
The business now employs 120 people, produces over a million cakes a week and has a turnover of £5 million.
Mike plans to grow sales by 20 per cent over the next 12 months by forming new agreements with major supermarkets and focusing on developing the business' range of luxury, premium products.
Mike Higgins, Managing Director of Buxton Spa Bakery, said: "Baking has been in the family for generations and the buyout ensures this tradition continues.
"The asset backed lending package developed by Commercial Finance allowed us to fund the deal without taking on debt and without relinquishing equity to a third party.
"Our expansion over the past 15 years has been based on the quality of our products, the customer service we provide and our ability to successfully adapt to changes in the industry.
"We are now implementing a strategy to target further growth in our own-label operations and will to continue to secure opportunities to grow our successful Holmfield Bakery brand. "
Bob Richards, Senior Regional Manager for Lloyds TSB Commercial Finance, said: "Buxton Spa Bakery is poised for significant growth and this deal gives it the fresh impetus to capture valuable market share.
"The facilities we've put in place will match the rate and scale of expansion and ensure the business has the working capital required to meet peaks in demand.
"Asset backed lending is increasingly being used in this type of transaction as it enables privately-owned businesses to transfer ownership without giving up equity. "
Jeff Barber, Partner with McInnes Corporate Finance, said: "It is very gratifying to be able to structure a deal that allows some family members to realise the worth their investment, whilst still retaining ownership in the hands of those family members taking the business forward .
"This has also very importantly been achieved alongside providing the Company with sufficient additional monies to meet their ambitious expansion plan. "
