Beer and Young bring in investors in sale of UK’s second largest frozen yoghurt brand
Beer and Young (B&Y) has supported an iconic premium frozen yogurt brand in its recent sale. In addition to selling from its own stores and franchises, it also distributes to the top four UK grocers via a licensing agreement with Unilever.
This vibrant brand attracts high-value target markets to eleven sites throughout London and the South East and has generated brand sales of c.£5m in FY 2015/16.
The business still required investment to grow, and existing shareholders were not strategically able to invest further. B&Ywasappointed by the Board to find a buyer for the business and to complete a sale within a strict five-month timeline.
With a business plan forecasting sales to increase to £18m by 2018/19 and profitability of 17% EBITDA, B&Ycould see that itsinvestors would be excited about this opportunity – a growing market segment with potential to grow through UK and international franchises, as well as through in-home product extensions.
B&Y worked quickly to develop an initial shortlist of 80 potential investors. Within four weeks of engagement it had shared detailed information packs under NDA with around 20 investors. This led to management meetings with six interested parties and the first of two offers was received within nine weeks of engagement.
The project was concluded within the required timescale and the buyer is now engaged in a process of rationalisation of the brand formats and integration with their existing operation.