Blackstone Acquires Stake in Tangerine Confectionery

Private equity firm Blackstone Group BX has agreed to purchase a 40% stake in Tangerine Confectionery from Growth Capital Partners. The value of the deal was not disclosed. Blackpool-based Tangerine is the largest independent manufacturer of sugar confectionery and popcorn in the United Kingdom. Brands include Butterkist popcorn, Barratt Sherbet Fountain and Dip Dabs, Henry Goode's liquorice and Princess Marshmallows. Last October, Tangerine turned to investment bank Rothschild to investigate growth options on its behalf. In February Tangerine said it was searching for European acquisitions that would provide it with a manufacturing base close to the Benelux countries, France, Germany, Italy and Spain. “Since 2005 we have worked closely with GCP,” Tangerine chairman Steven Joseph said, “and, with their support and flexible funding approach, we have been able to grow Tangerine significantly, organically and through acquisition.” Tangerine quadrupled in size since the buyout. “We are looking forward to working with Blackstone, who will help us to take the business to the next level of growth,” he also said. “Our new partners have invested in 150 businesses in the last 25 years, including organisations such as United Biscuits and The Merlin Entertainment Group. We believe Blackstone are the right people to help us achieve the next phase of our ambitious growth plans.” Blackstone shares are trading about 16% higher than at the beginning of the year. The stock has outperformed its industry average and the broader markets in that time.