McBride flotation aims to raise £180m

BY JOHN SHEPHERD

The difficult waters of the new issues market will be braved this summer by McBride, the leading maker in Europe of private label household and personal care products. The company hopes to raise between £160m and £180m from a placing and open offer of shares.

If the flotation succeeds, McBride will sport an initial stock market value of around £350m. Proceeds from the flotation will mainly be used to redeem preference shares and pack-back some mezzanine and senior debts, leaving the group with about £70m of borrowings.

Mike Handley, the managing director, who fronted a £275m management buy- in two years ago of what was the consumer products division of BP Nutrition, said yesterday: "While the news issues market has been difficult, we believe investors will back this.

"Private label household and personal care products have established a secure and developing share of the grocery retail market in recent years. Flotation will support the further development of our private-label activities in our existing and in new geographical markets."

He also said that McBride was not being press-ganged into a flotation by its shareholders - Legal & General Ventures and Lehman Brothers collectively own more than 50 per cent.

The big two investors will stay involved with McBride, and it looks as if neither will sell many shares when the flotation details are announced in the next couple of months. "They [investors] won't all be selling what they've got," Mr Handley said.

A further 10 per cent of the company is owned by 115 managers, including Mr Handley who has a 3 per cent stake. "I will keep most of that stake," he said. He said that up to two-thirds of the enlarged share capital is expected to be held by new investors.

McBride's sales and profits performances have reflected the consumers' growing liking for own label products. Group turnover, of which half is in the UK and more than 40 per cent in France, Italy and Belgium, rose by 25 per cent in the three years to June 1994 and profits by 50 per cent. Sales in 1993/94 amounted to £409m, generating operating profits of £34.9m. The group sells to the leading UK and French grocery chains.

Mr Handley said the flotation would enable the group to make more acquisitions, following the recent purchases of Longthorne Laboratories, a private label personal care business, and the private label textile washing powder business of Albright & Wilson in the UK and Spain.

"I think there will be opportunities. We look at acquisitions, and keep a weather eye on what is available," he added.

There is, he said, still plenty of growth for McBride to go for in the UK because private label household and personal products had so far only carved out a 20 per cent share of the market against the 35 per cent claimed by some food products.

Most of Europe has still to experience the growth in private label products. A report last month by Kleinwort Benson, the broking house, predicts that the "greatest opportunity" for progress in the private label market is for household goods. The report also said that retailers across Europe are beginning to develop private label ranges.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Attenborough with the primates
tvWhy BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
News
Campbell: ‘Sometimes you have to be economical with the truth’
newsFormer spin doctor says MPs should study tactics of leading sports figures like José Mourinho
Sport
football
Life and Style
Agretti is often compared to its relative, samphire, though is closer in taste to spinach
food + drink
News
Kelly Osbourne will play a flight attendant in Sharknado 2
people
News
Down-to-earth: Winstone isn't one for considering his 'legacy'
people
News
The dress can be seen in different colours
i100
Sport
Wes Brown is sent-off
football
Voices
Lance Corporal Joshua Leakey VC
voicesBeware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Life and Style
Alexander McQueen's AW 2009/10 collection during Paris Fashion Week
fashionMeet the collaborators who helped create the late designer’s notorious spectacles
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?