Blackstone acquires 40% of Tangerine

Blackstone Group has acquired Growth Capital Partners’ 40% stake in Tangerine Confectionery, the owner of the Butterkist popcorn and Barratt Sherbet Fountain brands.

The deal comes seven months after the company appointed Rothschild to provide advice on its future funding options. Growth Capital notes that the sale earned it a four-times return for its five-year investment although the sale price has not been disclosed. Growth Capital Partners, which specialises in UK SMEs, invested in the business in 2006 by backing the £10 million management buy-in (MBI) of Toms Confectionery, which later re-branded as Tangerine.

Led by managing director Chris Marshall, the management team bought Toms of Denmark and its three facilities in Blackpool, Liverpool and Poole, which manufactured boiled sweets, marshmallows, gums and jellies and toffees in 2006.
Since the buy-out, Tangerine has quadrupled in size, increasing its turnover from £40 million to £160 million and headcount to 1,500.