Fast-growing premium snack brand Pipers Crisps is eyeing up potential acquisition targets in the UK and overseas after hiring advisors to conduct a strategic review of options, including a possible future sale.
Corporate finance boutique Spayne Lindsay has been tasked with coming up with a plan to realise the potential value of the brand in preparation for an eventual sale.
The Lincolnshire-based crisp manufacturer recently broke into The Grocer’s annual Fast 50 list, thanks to 21.2% average growth over the past two years, with revenues up 17% to £9.8m in the year to 31 Jan 2017.
Pre-tax profits also rose 15% to £513,000 as it protected margins with increased automation and cost controls.
Pipers, founded in 2004 by three farmers, has so far eschewed the supermarkets in favour of the foodservice industry and indie retailers, including pubs, delis, coffee shops, restaurants and Virgin trains. It also exports to 37 countries worldwide, with exports growing rapidly to 6% of total sales last year.
“Pipers has developed a unique route to market but grocery is an untapped area for the brand so there is a big opportunity there for any potential buyer,” a dealmaker source said.
However, the owners are not in a rush to sell and have hired Spayne to help realise value over the next couple of years, the source added.
A Pipers spokeswoman said “Spayne Lindsay has been retained by the shareholders of Pipers Crisps to evaluate bolt-on acquisition opportunities in both the UK and internationally. The shareholders are not at this time considering any external investment in the business.”
Another City source said private equity would be the best home for Pipers as it would be too small for the big trade players such as Intersnack, Tayto and PepsiCo.
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