Cobbetts’ corporate team has advised independent private equity firm, Key Capital Partners (KCP), in its backing of the £24 million management buyout of TSC Foods Limited (TSC), a leading independent manufacturer of soups and sauces.

Scunthorpe-based TSC produces and supplies high quality chilled and frozen sauces, soups, entrées and dressings to the retail and foodservice markets.  Established in 1991, TSC is a key supplier of private label soups and sauces to a major food retailer, in addition to a number of high-profile pub and restaurant chains.

In 2008, TSC entered the branded chilled soup market through its development of the Glorious! fresh soup range, which is endorsed by celebrity chef Marco Pierre White. The company now plans to continue the roll-out of this brand across all of the grocery chains.

KCP and Yorkshire Bank have backed TSC’s existing management team and new managing director, Jonathan Skofic, in the buy-out of the business from previous managing director, Bill Morran, and fellow shareholders.

KCP has invested £6m for a majority stake in the business, alongside senior debt facilities of £11m provided by Yorkshire Bank’s Corporate & Structured Finance team. Exiting shareholders have also rolled over a proportion of their consideration into loan notes and equity in Newco.

Corporate partner, Sean FitzGerald, led the deal team for Cobbetts, assisted by solicitors, Abbie Robinson, Nia Bryan and Paul Crighton. Sean commented: “TSC Foods has an excellent reputation, both for a high level of quality service and for the strength of its management team.  The combination of these factors makes this an ideal investment for KCP, and we are confident that TSC will continue to grow and succeed in the future.”

The KCP team was led by partner, Peter Armitage, and investment director, Mark Buttler. Peter said: “We are delighted to be investing in TSC, a company with a reputation for excellent service, high quality and innovative market-leading products.

“With a talented and experienced management team, supplemented by a new managing director, we are confident that TSC will continue to grow and be in a strong position to take advantage of any upturn in consumer and business confidence over the medium term.”