FDBusiness.com

UK frozen desserts manufacturer Polestar Foods has been sold to Privet Capital, the turnaround investor, for an undisclosed sum. Privet’s investment in Polestar has prevented the immediate collapse of the company and has secured 255 jobs. It has also been working closely with Polestar’s management and has identified strategies to assure Polestar’s long term future.

Polestar was established in November 2009, following the acquisition of two frozen desserts businesses in Leamington, Warwickshire, and Okehampton, Devon, from Heinz UK. Polestar is now being restructured to consolidate its operations into its Okehampton Desserts subsidiary. KPMG has been appointed as administrator for its Leamington Desserts subsidiary.

Privet’s investment in Polestar will accelerate the turnaround of the company with the ambition of significantly growing its Okehampton flagship site over the next 24 months.

Ian Astley, a director of Privet, says: “Privet’s investment will support Polestar’s working capital requirements at Okehampton. It will also provide the Company with a renewed focus, increased financial strength and a clear strategic plan, thereby ensuring that the Company is well placed to continue as one of the UK’s leading manufacturers and providers of frozen desserts for many years to come.

Privet specialises in arranging capital investment for companies experiencing financial stress. Typical situations are where companies are underperforming, over-geared, have liquidity issues, or nearing or already in administration and needing both operational and financial input. Typical investments range between £1m and £10m in companies across a range of sectors in the UK with £10m-£200m turnover.