The deal

We’re pleased to have advised the shareholders of Raynor Foods (Raynors), the Essex-based sandwich and food-to-go business, on its sale to an Employee Ownership Trust.

Founded in 1988, Raynors has grown to become one of the top 10 sandwich suppliers in the UK, with its customers ranging from major high-street retailers, to airlines, sports stadia and NHS trusts. The business’ 40-van fleet delivers more than 19 million sandwiches, wraps, rolls and salads a year.

The move to an employee ownership model sees the £27 million turnover manufacturer’s 300-strong workforce acquire the entire share capital, and become beneficiaries of the business’ ongoing success.

Our Corporate Finance team, led by Partner Chris Adlam and Tax Director Matt Field with support from Director Alex Hunton and executive Cameron Robertson, helped manage the transaction from start to finish, including advising on the feasibility of this type of sale, and significant tax and debt support.

Chris Adlam, Partner at FRP Corporate Finance, said: “We’re pleased to have structured an exceptional deal for all involved. The transaction highlights the continuing interest in employee ownership as an attractive exit option that allows owners to pass on value and legacy to their loyal workforce. The debt funding aspect also shows that, whilst interest rates have increased, there is still appetite for lending to businesses with robust underlying fundamentals and a strong management team. We look forward to seeing Raynors go from strength to strength and wish the team every success for the future.”

Matt Raynor, Former Chairman at Raynor Foods, added: “We are excited to join the growing group of energetic and successful companies who have decided that an employee-owned structure provides the best basis for future growth and continuous improvement of employee welfare and motivation. We are grateful for FRP’s trusted advice and support throughout the process, and the successful outcome is testament to the team’s EOT knowledge and expertise.”

Birketts LLP provided legal advice to support the transaction.