Thorntons considering MBO move
Private equity firm in talks with confectionery retailer
October 15 2003
Confectionery retailer and manufacturer Thorntons is in talks with a private equity player over a sale of the company.
Thornton’s management team, led by chief executive Peter Burdon, have been given the go-ahead by the independent directors, company chairman John Thornton and John Jackson, to investigate sources of finance for a management buy-out, which would take the business private.
A statement said there had been “preliminary discussions with a private equity house that may or may not lead to an offer being made for the company.”
The company has confirmed that it has turned down one approach from an unidentified venture capital group because it felt the offer was too low. Burdon, along with finance director Martin Allen, is looking for a better deal.
Under Burdon, Thorntons has implemented a progamme to develop the business as a branded manufacturer with a range of channels to market, reducing its reliance on seasonal chocolate sales.
It has developed branded desserts sold through supermarkets such as Tesco, as well as expanding the product range sold through its stores and adding coffee bars in some locations.
