Duff & Phelps, has successfully advised Banham Group Ltd and Banham Poultry Ltd on its successful sale to Chesterfield Poultry, following a restructuring of the two companies.The family owned group with an annual turnover of c.£150m, manages and operates a number of breeder farms, hatcheries and broiler farms which supply poultry products to its in-house processing division. The business processes around one million birds per week, serving UK supermarkets, other established stores and wholesalers nationwide.
In July 2018, Duff & Phelps were introduced to management by Corporate Finance Network (CFN) member firm, LEES Accountants who have offices in Norwich and London, after the businesses encountered severe cash flow difficulties. This was largely driven by rising feed costs and increasing margin pressures due to a price war at UK Supermarket chains.
Once formally engaged by the management team, Duff & Phelps immediately bolstered the businesses finance function by introducing an Interim Manager. The Duff & Phelps Advisory & Restructuring team also assisted in the short-term cash flow preparation with management whilst reviewing the various options available to the group. This resulted in a phased business sale strategy.
An offer for the sale of the Business and Assets to Chesterfield Poultry was accepted and the sale was completed in an extremely short time frame due to the deteriorating cash position.
The successful sale of the business saved over 1,000 jobs and protected the continuity of the production facility.