MANAGEMENT BUYOUT IS ICING ON CAKE FOR ABERYSTWYTH BAKERY LIMITED

One hundred and forty jobs have been saved at a bakery in Aberystwyth thanks to a management buyout. Independent chartered accountancy firm, Broomfield & Alexander, worked with Ian Williamson, factory manager at Elisabeth-the-Chef, to put together a deal under the Welsh Development Agency’s (WDA) Access to Capital Programme.

In August, staff and managers were told that unless a buyer could be found the factory would be closed on 30 November. Ian Williamson made a decision in September to bid for the business under a management buyout. A funding package of over £1.3 million was put together in less than eight weeks, enabling the deal to take place. This included a loan and capital from Barclays, an RSA (Regional Selective Assistance) Grant from the Welsh Assembly Government, a loan from Finance Wales and a Process and Marketing Grant from the WDA. The new company will be called Aberystwyth Bakery Limited and will continue to manufacture bakery products for supermarkets and wholesalers.

Ian Williamson, managing director of Aberystwyth Bakery Limited said: “When I decided to go ahead with the management buyout, the thought of having to raise over £1 million seemed quite daunting. We were working to a very tight deadline and I knew that just identifying what funding was available could take a long time. However, working with Broomfield & Alexander meant that I was able to take advantage of their vast knowledge of funding and grants providers and speed up the whole process considerably and meet the deadline of the end of November.”

Seamus Gates led the team at Broomfield & Alexander that put the package together. He said: “Management buyouts are a key element of the Access to Capital programme. When a deadline to sell the company has been set, it is imperative that a funding package is put together quickly. As we work so closely with the major funding providers on a regular basis we are well placed to advise companies of what they are eligible to apply for. The buyout of Elisabeth the Chef is a prime example of how all the various agencies in Wales are pulling together to promote private enterprise.”

Specialist commercial law firm, Berry Smith advised on the legal aspects of the management buyout. Nigel Greenaway, an associate in the corporate team heading up the deal said: “I am absolutely delighted with the successful outcome of the transaction. With Ian Williamson driving forward the management team, I am sure it has the ambition and experience to succeed in the future.”

Broomfield & Alexander has strong links with finance providers and in the last year had helped clients raise over £25 million. For further advice about raising finance or any of the services that Broomfield & Alexander has to offer, please telephone 0800 052 1387 or email infoline@broomfield.co.uk

Established in 1912, Broomfield & Alexander is one of the largest independent chartered accountancy firms in Wales with more than 80 employees working from offices across South East Wales. It offers an extensive range of business advice and financial planning tips online. Just visit www.broomfield.co.uk and click on Business Forum.

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