The Business
HCC is a leading UK independent canned drinks co-packing service provider for a wide range of customers from multinational drinks brands to fast growing challenger brands. The company was established in 2009 to address the attractive opportunity identified for an independent canning operator servicing short to medium length runs to an underserved sector. The acquisition was a carve-out from a wider privately owned group.
Investment thesis
HCC was a business transformation deal with substantial development planned of capacity, capability, ESG focus, customer base and team. The business is a market-leading player with a defensible position underpinned by a strong reputation for quality and flexibility. The market served is large and benefits from strong underlying trends driven by requirements for sustainability, with a desire to move away from plastic, as well as changing consumer preferences and the increasing proliferation of new drinks brands. HCC had grown strongly since formation and at acquisition was limited by its capacity with our investment case underpinned by significant capex upgrades and the addition of new larger high-speed canning capacity. Supported by significant investment in the management team, the resultant business would be better placed to attract a broader, higher profile customer set, with significant capacity development achieved together with a material increase in HCC’s customer base.
