An all-Bristol advisory team of lawyers and financial advisers has completed one of the biggest deals of recent years in the UK’s fast-growing pet food industry, despite the challenges caused by the coronavirus pandemic.
The sale of Forthglade, the fast-growing ‘posh’ dog food brand, to IK Investment Partners (IK) was put together in the city by Momentum Corporate Finance and Bristol law firms TLT and Womble Bond Dickinson (WBD). 
Momentum’s Rob Crews and Matt Stafford provided independent financial advice to the management team at Devon based Forthglade while Andrew Webber and James Webb at Bristol-headquartered law firm TLT provided legal advice to the management team and Simon Hewes in WBD’s office in the city advised the sellers on the transaction, reported to be valued at around £50m.
Momentum Corporate Finance Partner Rob Crews said the deal highlighted that, despite the current macroeconomic uncertainty, there was still strong private equity appetite for high-quality assets.
Forthglade, which produces premium wet and dry dog food and treats, was founded in 1971 and has been led by Gerard Lovell and Chris Brooking since their management buyout in 2011.
Private equity firm Piper invested £6m in the firm in 2015. IK will acquire a majority stake in Forthglade, with the management team reinvesting alongside.
The company recently opened a state-of-the art factory in Okehampton producing natural wet dog food – a move that added significant additional capacity to support future growth. 
Forthglade has also successfully launched ranges of cold-pressed natural dry food and hand-baked dog treats – key growth areas for it. It employs more than 130 people in the UK and distributes across supermarkets, independent specialist pet retailers and online retailers including its own website.
With IK’s investment, Forthglade plans to increase brand awareness and distribution to drive growth in the UK and overseas. IK will also support Forthglade’s ongoing digital development, as well as further expansion in the business’ product range and growth in its manufacturing capabilities.
Momentum Corporate Finance Partner said Rob Crews, pictured, said: “Congratulations to Gerard, Chris and the whole Forthglade team in the successful completion of their secondary buyout backed by IK. We are delighted to have been able to advise management on this transaction.
“Forthglade is a rapidly growing consumer branded business led by a high-calibre management team and we are confident that it will continue to thrive alongside its new backer. This deal highlights that, despite the current macroeconomic uncertainty, there is still strong private equity appetite for high-quality assets such as Forthglade.”
WBD partner Simon Hewes, pictured, added: “Following a successful five-year investment programme, it’s been a pleasure working with Piper and Forthglade’s shareholders on this transaction, seeing how the business has developed and grown in that period.
“The Covid-19 pandemic presented a number of challenges, but these were overcome with a combination of confidence, pragmatism and innovation using e-signatures to agree terms with the parties involved.
“WBD had recognised the potential for e-signature platforms to transform the way in which legal documents can be executed well before the Covid-19 pandemic, becoming an early adopter in the legal sector. Therefore, we were in a strong position when the use of this technology became a necessity, rather than an innovative option.”
IK partner Tom Salmon said: “Forthglade is an excellent business and a great fit for our investment strategy. We have been very impressed with the achievements of Gerard, Chris and the rest of team in growing the business in recent years, and we are delighted to be backing them in the first investment made by IK’s new UK investment team.
“The market for natural pet food in the UK is particularly strong and resilient, and we see significant further growth potential for Forthglade in the UK and beyond in the years to come. With our strong track record in supporting growing food production and animal health companies, we look forward to similar success with Forthglade.”
The deal is Momentum’s third successful completion of the summer, following on from the sale of Naimuri to Qinetiq and the Techmodal’s acquisition by BAE Systems.
