An 111-year-old Scottish soft drinks company is set for expansion after it was bought by two businessmen in a deal worth more than £10 million.
An 111-year-old Scottish soft drinks company is set for expansion after it was bought by two businessmen in a deal worth more than £10 million.
Kenny Webster and Andy Anderson, who have several years experience of the soft drinks industry and the retail sector, are the new owners Sangs (Banff) Ltd after they secured the backing of Allied Irish Bank (GB).
The new owners plan to grow the business by developing its Macduff manufacturing plant and its depot in Aberdeen as well as by introducing new distribution channels.
The business was sold by the three Donald brothers, whose family first took control of the company in 1971. James Donald stays with the company following completion while Robbie and John have been retained as consultants during the transitional period.
Robbie, who was managing director, had worked for the business for 35 years, Jim for 40 and former sales director John had 50 years with the company. Robbie said the new owners have the best interest of the company and its employees at heart and the vendors see their growth ideas as a positive step forward.
“Quite simply we would not have considered an approach that could have broken up the business,” he added. “Instead, this team have shown real drive and commitment, working closely with us over the past few months to obtain a thorough understanding of the people, products and systems.”
Webster and Anderson were advised by Glasgow-based chartered accountant O’Haras, and the team was led by John O’Hara and George Ross.
The firm provided valuation services, managed the negotiations and compiled the reporting package needed to secure the funding.
“The acquisition team believe that this was a very successful outcome and they are very confident that they can move Sangs forward successfully, using their combined skills and the distribution network,” O’Hara said.
The Donald brothers’ lead adviser was Ritson Smith, which was headed by partner Graham Alexander.
He said the deal was made easier with the acquirers already known to Sangs’ management.
“After working with Sangs for a number of years, we have seen the business grow significantly,” Alexander said. “We are confident that the company will continue to flourish under its new ownership and wish them every success for the future.”
AIB was advised on the terms of its package by Louise Hamilton, a banking partner at Harper Macleod LLP.
Hamilton said she was instructed to advise on all banking and commercial aspects of the transaction. “We worked closely with the purchasers’ solicitors to ensure completion within a two week time period. Sangs’ management team have a clear vision for the future and I am confident that they will take the business from strength to strength.”
Sangs, which employs 73 people in Macduff and Aberdeen, distributes products throughout the UK, which include Deveron Valley spring water, MacB flavoured water, Jet Pop children’s drinks, Fruit Twist juice drinks, One Fruit and Justadash sugar free concentrates.
