FDBusiness.com

Tangerine Confectionery, which is owned by private equity firm Growth Capital Partners, has called in investment bank NM Rothschild to advise it on options for raising capital, raising the prospect that the UK-based sugar confectionery business could be sold off. “Five years ago we were planning for a stock market listing around now, but we think now is probably not the right time,” points out Steven Joseph, chairman of Tangerine Confectionery. “We are looking at a listing in two years, but in the meantime we would like to raise additional capital to take the company forward.”

Tangerine Confectionery was created through three key acquisitions within the UK since 2006. In January 2006, a management team with an established pedigree in the confectionery industry acquired Blackpool-based Toms of Denmark. This was followed soon after by the confectionery arm of Burtons Foods in August 2006, to create a £60m turnover business, committed to the production of both own label and branded confectionery for the UK and abroad. In February 2008, came the third and largest acquisition when Monkhill Confectionery was acquired from Cadbury Schweppes for £58m in cash. This instantly made Tangerine one of the UK’s largest sugar confectionery businesses and a leader in popcorn. The group now generates annual sales of more than £150m.

While Tangerine Confectionery has plans for further growth, due to the current difficult economic environment the immediate focus remains on achieving the company’s financial objectives for 2010.