KPMG finds buyer for Uvenco to save 170 jobs

11 June 2018 Consultancy.uk

Almost 170 jobs across the UK have been safeguarded, after KPMG administrators successfully found a buyer for Uvenco UK. The ailing vending machine company had been unable to pay off debts of over £1 million, despite an annual turnover of around £15 million.

Trading subsidiaries of collapsed vending machine company Uvenco UK – which holds offices in London, Newport, Blackburn, Coventry and Liskeard – have been purchased by Irish snack company Montagu Group. The group is an affiliate company of Tayto, the foods group which runs the Golden Wonder brand, as well as being a specialist vending solutions provider in its own right.

The purchase is the latest in a succession of purchases by Montagu, which recently acquired coffee and vending machine supplier, Cambridge Vending as well as acquiring Leeds-based Freedom Vending in April last year. The latest deal notably broadens Montagu’s geographical reach, thanks to Unevco’s offices and franchisees across the UK, as well as adding a further £15 million in turnover – placing the group as the largest British-owned vending company.

Montagu Director Paul Allen said, "When we recently announced the acquisition of Cambridge Vending, we were already working on this deal as we see vending and ‘consumption on the go’ as a key area of expansion for us. This purchase brings us another 12,000 points of sale, giving us a total of more than 25,000 across the group.”

All employees at Uvenco UK's trading subsidiaries have been transferred across, meaning 169 jobs have been saved by the acquisition, which was overseen by administrators from Big Four professional services firm KPMG. Unevco had appointed Howard Smith and David Costley-Wood of KPMG as joint-administrators just a day earlier, with Unevco’s subsidiaries and their assets (excluding book debts of £1.6 million) sold to Montagu Group for a total consideration of £1.8 million.

Howard Smith, who is an Associate Partner at KPMG, said, “The companies had experienced declining revenues over a prolonged period, significantly impacting cash flows. Following an accelerated sales process, we are delighted to have been able to safeguard all 169 jobs with this sale of the business and assets. We wish the new owners well in the future.”