MSIF Venture Fund Portfolio
Vitaflo
The Company
Vitaflo has developed, and sells worldwide, an innovative range of nutritional products to manage metabolic diseases and disease-related malnutrition. It is one of the global market leaders in its industry and sells products to patients via the NHS and wholesalers in the UK , and through distributors overseas.
The company was formed in 1997 by the acquisition of a small Scottish company, which was relocated to its current site at Brunswick Dock in 1998. The business is run by directors Tony Partington, Bill MacNab and Maura O’Donnell and employs 41 staff. From a turnover of £200,000 in 1998, Vitaflo has grown to its current £11 million turnover and continued growth in turnover, profits and staff is forecast.
The Investment
MSIF’s Venture Fund invested £3m as part of a £16m funding package to refinance the business.
The deal included a comprehensive funding package from Clydesdale Bank Plc – the sister bank of Yorkshire Bank, and directors’ own investment will allow for the exit of non management shareholders including shares held by MSIF’s first Venture and Mezzanine Funds following an initial investment of half a million pounds in 1998.
This deal provided MSIF with both its most significant exit to date and also with its largest single investment.
The Outcome
Post-transaction the company is continuing to grow and is trading ahead of budget. A new range of products have been developed and approved and are scheduled for launch later on in the year.
Although the existing team remain and continue to drive the business, a new CEO has been appointed and is proving very successful so far.
www.vitaflo.co.uk
