Yorkshire Bank funds Fultons Foods as it moves into private ownership

The management team of Frozen Value Ltd which trades as the well known, long established discount grocery retail chain, Fultons Foods has been backed by Yorkshire Bank to buy out 3i’s minority share holding in the company. The company will now be 100 per cent owned by the existing management team, managing director, Kevin Gunter and finance director, Karen Rees.

The company was established over 50 years ago by Jack Fulton, who grew the company from a market trader to a retail chain. It was purchased over 14 years ago by a management buy-in led by Kevin Gunter and backed by 3i.

"The funding from Yorkshire Bank means we are now 100 per cent privately owned," says Kevin Gunter, managing director. "The funding is allowing us to secure an exit for 3i and will enable us to grow the business at a faster rate with a minimum of eight new stores and 60 jobs being created each year."

New stores will be added to the company's Yorkshire heartland together with expansion into new areas. Its current reach is from Hull to Manchester and from Harrogate to Derbyshire.

The Fultons Foods/Jack Fultons name arguably has the strongest most recognisable discount food brand within Yorkshire and is renowned for selling 'branded products at the lowest prices'. The stores maintain a core range of products (with a strong frozen offering) and spot purchases stock at heavily discounted prices around these core lines.

In 2005 the £50 million turnover company invested in a new head office and warehouse facility close to the M1 nearly Barnsley.

Kevin Gunter adds: "Yorkshire Bank Corporate & Structured Finance have been very co-operative and they are keen to work with us on the agenda we want to pursue. We chose them as they have a good understanding of our business and were willing to be both supportive and flexible in their approach."

Mike Selina, director with Yorkshire Bank Corporate & Structured Finance in Leeds led the deal with associate, Oliver Gaunt. Selina comments: "Fulton Foods has a well defined and compelling retail proposition. It offers great value deals on branded groceries from convenient high street locations. It is well placed to help consumers manage their budgets which are undoubtedly going to come under pressure with VAT and other tax rises and uncertainties over job prospects."

"Yorkshire Bank is backing an experienced management team, led by Kevin Gunter who has a proven track record of success achieved by offering customers great value. The business is in good hands and well positioned for growth."

Yorkshire Bank Corporate & Structured Finance were advised by Kathryn Walter of Eversheds (Leeds).