Blackstone eyes 40% of Tangerine
The Blackstone Group is reportedly in talks to buy a 40% stake in Tangerine Confectionery, the UK’s largest independent manufacturer of sugar confectionery.
Since its formation in 2005, following the buy-out of Danish company Toms, Tangerine Confectionery has quadrupled in size through both organic growth and acquisition. Current turnover is over £150 million and it employs over 1,300 people.
In 2005 Tangerine bought the confectionery division of Burtons Foods, maker of Liquorice Allsorts, and, two years later, Monkhill Confectionery from Cadbury’s which came with brands such as Butterkist popcorn, Barratt’s sherbert fountains, Sharp’s toffees and Wilkinson’s Pontefract Cake. It also owns Henry Goode’s soft eating liquorice and Princess marshmallows. In addition, Tangerine manufactures own brand products for the UK’s high street food retailers.
The company is 60% owned by its senior management. If successful, Blackstone would buy the stake currently owned by Growth Capital Partners.
Plans for Tangerine wouldn’t include merging with any existing business but the company is likely to use Blackstone’s funds to finance more bolt-on acquisitions in the confectionery sector.
