Crisp deal for Investcorp - IFN

Crisp deal for Investcorp

Daily Cover

GLOBAL: Bahrain-based Shariah compliant investment firm Investcorp has acquired UK-based premium crisp and snacks producer Tyrrells Potato Crisps for GBP100 million (US$153.46 million). The company, which already has a vast distribution network across the UK, also has a presence in Germany, the Netherlands, France and North America; with its international business lines contributing to an estimated 20% of the group’s total turnover. It currently has 270 staff under its employment, and records an average of GBP100 million (US$153.46 million) in retail sales value. Carsten Hagenbucher, principal in Investcorp's European corporate investments team, said: “The premium snacks market is very dynamic and attractive. Tyrrells' offering is unique and the business has an excellent position in the UK and a rapidly growing international footprint. We are excited about partnering with Tyrrells' entrepreneurial management team to accelerate the international expansion and to build a world-class business.” Analysts do not expect the change in ownership to have an effect on Tyrrell’s growing European exposure, and instead say that its business expansion will depend directly on the company’s marketing strategy despite it now being owned by private investors. For the last 12 months ended the 30th June 2013, Investcorp’s net income saw considerable year-on-year growth at 56% to US$104.9 million, which the company attributes to an increase in investment and placement activity driven by continued demand from clients in the Gulf for alternative investments; supported by a steady flow of profitable realizations. Its gross operating income increased by 35% to US$361.8 million, while second half net income stood at US$65.7 million. Investcorp’s deal activity fees saw a doubling to US$193.4 million, representing 58.7% of the firm’s total fee income.