Thu 04/08/2021 11:31 AM
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FY’19 Financial Report

Direct lenders are circling the carve-out of U.K. dessert manufacturer Gu Puds from British poultry company Noble Foods as the sale enters a second round of bids with sponsors and corporates bidding.

Only funds are tracking the sale with leverage levels in the range of 4x to 5x. The process is currently at its due diligence stage, sources told Reorg.

Gu Puds is being marketed off EBITDA in the range of £13 million to £15 million, sources said. U.K. advisory boutique Spayne Lindsay is running the sale.

The company has performed strongly amid the Covid-19 outbreak as consumers are spending more on luxury food, which is attractive for funds, sources commented.

In November 2020, Sky News reported that Gu Puds was being put up for sale and that it could be valued at more than £100 million. Noble also explored a sale of the company two years ago and Nestle was among the potential buyers, according to the article.

Gu Puds generated revenue of £47.9 million in the year to September 2019, a 12% year-over-year increase from £42.7 million the previous year, according to its most recent financial report. The dessert maker reported profit before tax of £1.5 million and had cash of £3.2 million at September 2019.

The group expects the general level of activity to increase in the forthcoming period following the opening of new production facilities, according to the report. Given the company is predominantly U.K. based with a “well-established workforce” the group believes Brexit will not have a significant impact, the report added.

Noble Foods bought Gu Puds in 2010 and today Gu Puds sells its products across the U.K., France, Germany and the U.S.

Gu and Spayne Lindsay did not respond to Reorg’s request for comment at the time of the publication.

-- Lara Gibson, Lucía Camblor
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