Shire Foods secures Volvere funding
Turnaround investment company Volvere has invested in Leamington Spa-based Shire Foods. Following the £500,000 deal, Volvere is expected to own 54 per cent of Shire.
Shire specialises in manufacturing frozen pies, pasties and sausage rolls.
The business employs aabout 100 people in its factory in Leamington Spa and has been trading for more than 40 years.
Volvere has invested £500,000 for new ordinary shares in Shire, which will be met from existing cash resources.
Following the transaction and the capitalisation of certain management loans, Volvere will own about 54 per cent of the company.
In addition, Volvere will provide working capital facilities to assist the business in its future development, which is currently expected to be up to the value of a further £500,000.
For the year ended 31 May 2010, Shire's revenues and loss before tax were £8.5m and £0.2m respectively.
Jonathan Lander from Volvere said: "I am delighted to be making this investment in Shire, which has a long history and a well-established brand in the sector. We are looking forward to working with Shire's management and staff in putting the business on a firm footing for prosperity and growth."
