Press Release

LDC BACKS ROLL-OUT OF HEALTHY FOOD-TO-GO RETAILER

£12m funding package to support expansion of Vital Ingredient in London and throughout the UK

Plans to more than double the number of stores to at least 35 over next three years

Leading mid-market private equity firm LDC has invested over £8m in the management buyout of Vital Ingredient, a leading healthy food-to-go retailer, to support the roll-out of the group both within London and throughout the UK. Santander will provide a further £4m of funding to support the expansion.

Founder, Alex Heynes, opened its first store in London’s West End 15 years ago, and the business now operates 17 stores in the capital which offer a range of fresh, healthy, natural and responsibly-sourced ingredients for consumers to create their own food-to-go meals. Its offer includes salads that are tossed to order in front of the customer from a choice of over 65 ingredients and dressings, a selection of hot food and soups, superfood smoothies, desserts and snacks. The business has also recently launched a new breakfast offering and its non-lunchtime trade is growing strongly.

In addition to its retail outlets, Vital Ingredient also runs an online delivery service and a click and collect offering.

Employing over 200 people, Vital Ingredient has more than doubled turnover in the last three years to over £12m thanks to increasing demand amongst time-pressed city workers for healthy grab-and-go meals.

The buyout team led by Alex includes Managing Director Paolo Peretti and Finance Director John Moulton. The transaction was led by LDC investment directors Simon Hemley, Alistair Pendleton, and Peter Latham, with Hemley and Pendleton joining the board as Non-Executive Directors. Private investor Paul Oberschneider has sold his stake in the business.

Graham Turner, former CEO of restaurant group Tragus – whose brands included Café Rouge, Strada and Bella Italia – will join the board as Non-Executive Chairman. Graham is also the Non-Executive Chairman of The Liberation Group, the leading Channel Islands and West Country pub, brewer and drinks business, and Barburrito, the award-winning Mexican restaurant chain.

LDC and management advisers on the transaction include Isca Ventures, Burges Salmon, PwC, Javelin and TLT. Vendors were advised by Altium and Charles Russell Speechlys.

The deal will enable the business to continue growing its London presence and support expansion into new cities across the UK. LDC are backing management to more than double the estate within the next three years to at least 35 stores. It will also be introducing new store formats and exploring new brand partnerships as part of its growth strategy.

Commenting on the deal, Paolo Peretti said: “We have seen rapid growth in recent years in line with the ever-increasing demand for on-the-go, healthy eating. Our brand sits right at the heart of that market, providing thousands of people with convenient options that also provide quality nutritional content and maximum choice. Having the support of an experienced and supportive investment partner like LDC will give us the additional firepower needed to secure new stores and accelerate growth.”

Simon Hemley, Investment Director at LDC, added: “Vital Ingredient has a strong platform for growth, we have been impressed by strong customer feedback and believe we have identified a business with an ambitious leadership team and unique market proposition that taps into modern day consumer eating habits.

“This investment demonstrates LDC’s commitment to supporting the growth of ambitious UK-based companies, using our funding and balance sheet strength, and strategic expertise to create scale and sustainable value.”

ENDS

Issued on behalf of LDC by Citypress

For press information, contact:

Rebecca Hart on 0203 773 9543 or rebecca.hart@citypress.co.uk

Martin Currie on 0161 235 0310 or martin.currie@citypress.co.uk

Notes to editors: 

1. LDC is part of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.
2. LDC backs ambitious management teams from UK-based companies seeking up to £100m of equity for management buy-outs, institutional buy-outs or development capital transactions.
3. LDC is celebrating its 35th anniversary and has completed more than 500 investments   since 1981.
4. LDC has a portfolio of more than 90 businesses across the UK which collectively generates £6bn of revenues and employs in excess of 37,000 people.
5. LDC invests in a broad range of sectors and has particular experience in Construction & Property, Financial Services, Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure and Support Services.
6. LDC has committed to invest £1.2bn in UK mid-market businesses over the next three years.  Its 90-strong portfolio of companies includes online travel agent Iglu.com, lifestyle brand Joules and restaurant owner D&D London.
7. LDC invested almost £350m of equity across 14 new businesses in 2015 and generated exit proceeds approaching £500m.  Earlier this year, it backed the secondary buyout of CitySprint, the UK’s leading technology driven same day distribution company and the management buyout of Panther Logistics, the UK’s largest independent two-man next day home delivery provider, and the MBO and merger of cycling parts, accessories and clothing business, Zyro-Fisher.
8. LDC is the leading private equity company in the UK mid-market. Recent transactions include investments with NEC Group, Centiq, Seabrook Crisps, Iglu, Aspin Group, Away Resorts, SSP, Synexus, PDG Helicopters and CitySprint.
9. LDC has a UK regional network with offices in Aberdeen, Birmingham, Bristol, Leeds, London, Manchester, Nottingham and Reading.
10. For further information, visit http://www.ldc.co.uk/pressrelease