Butcher’s Pet Care (Butcher’s), a family-owned pet food business based in Northamptonshire, has been acquired by Inspired Pet Nutrition (IPN), the independent pet food business owned by CapVest.
The acquisition will include a refinancing of term debt provided by Blazehill Capital and working capital facilities provided by Secure Trust Bank Commercial Finance (STB).
Founded in 1983 by Graham Baker, Butcher’s is one of the UK’s leading pet food brands, specialising in natural pet food for dogs and cats. Its products are available in all major retailers across the UK, online and in several markets worldwide.
The business faced significant inflationary pressure in early 2022 as a result of the war in Ukraine and in parallel management were looking to deliver a strategic growth plan, which included a full brand refresh.
To allow the business to withstand the market volatility and ensure the successful delivery of the business plan, Butcher’s sought to refinance their existing facilities with a more flexible funding package to provide the necessary financial breathing space.
The optimal solution was a combined funding package from Blazehill Capital and STB, consisting of an STB working capital facility and a Blazehill Capital non-amortising term loan. Since securing the new facilities, the business has gone from strength to strength, culminating in a successful exit for shareholders to Inspired Pet Nutrition.
The acquisition by Inspired Pet Nutrition creates a petfood group with sales of more than £350m and allows Butcher’s to continue focusing on its strategic growth ambitions.
Tim Watsham, former CEO of Butchers Pet Care, said: “This acquisition marks an exciting milestone in the Butcher’s journey. Both the Blazehill and STB teams took the time to understand the drivers of our business and our growth ambitions.
“The combined facilities, consisting of a flexible STB working capital facility and an innovative stretch-senior Blazehill term loan integrated seamlessly, with the dual-lender structure operating throughout the term as if it were a single bilateral solution.
“We’re all excited for what is next as we enter a new chapter and would like to thank the Blazehill and STB teams for their patient and pragmatic approach throughout.”
Tom Weedall, Managing Director at Blazehill Capital, said: “From the outset we invested significant time with Tim and Butcher’s key stakeholders to fully understand their strategic plan for the business and ensured that they had access to sufficient capital to support its objectives.
“This hugely successful outcome for the Butcher’s team underscores Blazehill’s ability to provide Transformational Capital to unlock further liquidity for businesses and, crucially, highlights the benefits of Blazehill’s hybrid approach to structuring debt led solutions.
“We have built a strong relationship with Tim and the team and we’re excited to see the business continue to flourish following its acquisition by Inspired Pet Nutrition.”
Colin Muir, Portfolio and Structuring Director at Secure Trust Bank Commercial Finance, said: “From supporting the business in 2022 to its recent acquisition, the Butchers team has remained committed to strategic growth and has turned the business around, delivering strong results and ultimately driving forward a successful acquisition.
“By working closely with Tim and the team, we were able to initially structure a flexible facility that would allow Butchers to unlock the value held in the business and grow its market presence.
“The facility, alongside Blazehill Capital, all helped to achieve this so it’s great to see such a strong result for the business as it enters a new era with Inspired Pet Nutrition. We all wish the business the best in its next chapter of growth.”
