Abel & Cole sets its stall out for a £30m sale
Abel & Cole, the online organic grocer, is preparing its second attempt to sell the business , with an estimated price tag of more than £30m, following a stalled sale process last year.
The fruit and vegetable delivery firm is expected to issue an information memorandum to potential buyers next month, which could attract the interest of private equity firms and retailers. Abel & Cole is working with advisers at the accountancy firm PwC to sell the business after turning around its performance in the past two years.
Keith Abel, the delivery firm's chief executive, founded the company in 1988 from the basement of a house in south-east London and it now delivers to more than 50,000 households each week.
Abel & Cole grew sales by 25 per cent to £35.74m for the year to 31 August 2011 The UK's fourth and fifth biggest supermarkets, Morrisons and the Co-operative Group, which do not deliver food online, could ask to see Abel & Cole's information memorandum. The online grocer Ocado, which has never made a pre-tax profit, will also monitor the situation carefully.
Mr Abel sold most of the business he founded to the buyout firm Phoenix Equity Partners in October 2007, in a deal that valued the company at about £40m. But Abel & Cole's performance subsequently started to go downhill and it was forced into a "debt-for-equity" swap in early 2010 with its lender, Lloyds Banking Group. The bank remains its biggest shareholder, with Mr Abel and Phoenix holding minority stakes.
Mr Abel returned to turnaround its fortunes two years ago and Abel & Cole delivered pre-tax profits of £1.88m in the year to the end of August, with underlying earnings coming at about £3m. All parties declined to comment.
- 1 Disney heiress Abigail disowns her share of family profits in West Bank company
- 2 The secret report that helps Israel hide facts
- 3 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 4 Ebola virus: UK health officials issue warning to doctors as experts admit the outbreak 'is not under control'
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...