Delenco Foods

We’re pleased to have supported family-run premium sausage manufacturer, Delenco Foods, on its sale to a private equity-backed food manufacturing group.

Based in Leyton, Delenco Foods is a third-generation family business that was founded in 1963. Its 76-strong team produces high-quality sausages for a wide range of hospitality and leisure operators including restaurants, hotels and cruise liners, using meat sourced from sustainable and ethical farms across the UK and EU.

It has now been acquired by Red Sky Food Group, a company that was established earlier this year with the support of private equity investors, Literacy Capital.

Our Corporate Finance team acted as the sell-side advisers on this deal. We managed all stages of the transaction, developing the financial model, supporting negotiations and coordinating due diligence, allowing the deal to reach a positive conclusion.

The deal will allow Red Sky Food Group to further grow its capabilities within the food manufacturing sector, having acquired welsh meat manufacturer Langford’s earlier this year. Meanwhile Delenco Foods will benefit from increased resources and operational synergies now that it’s part of this wider portfolio.

Chris Adlam, Partner at FRP Corporate Finance, said: “This transaction reflects the continued market demand for well-run, high-quality food manufacturing businesses, and is a testament to the strong reputation that Delenco Foods has built up over the past six decades.

“It’s also an example of the continuing consolidation we’re seeing in a sector that offers many opportunities to find operational synergies to drive efficiencies and build economies of scale. Red Sky Food Group is a strong strategic fit for Delenco Foods, and I look forward to seeing both parties reap the rewards from this partnership in the coming years.”

Richard Barber, Director at Delenco Foods, added: “The company and its excellent team have always been committed to quality, consistency and long-standing customer relationships and this deal will allow us to continue this. Joining Red Sky Food Group marks an exciting new chapter for us and provides a strong platform for our future growth.

We have worked with Chris and the team at FRP Corporate Finance for a number of years and when it came to this deal, they certainly didn’t disappoint and enabled a smooth process from start to finish.”