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UK Montagu Private Equity makes first independent acquisition

UK Montagu Private Equity has completed its first acquisition as an independent firm with a £70m investment in Marlow Foods, the food manufacturer owned by AstraZeneca.

Marlow makes a range of branded chilled and frozen foods including meat substitute Quorn. The firm had annual revenues of over £80m in 2002.

AstraZenenca first indicated an interest in disposing of the company last year. But at the time the suggested price tag was significantly higher at £100m.

HSBC, Montagu's former parent company, has provided debt financing for the deal. Montagu is thought to be interested in a number of additional acquisition targets including Linpac, a UK packaging manufacturer that is for sale for around £900m.

Montagu spun out from HSBC in March but the bank has retained a 20 per cent stake in the buy-out business. The firm currently manages a E2bn fund that closed in October 2002, half raised from HSBC and half from third-party investors. The firm also has another E1bn under management on behalf of HSBC in a legacy portfolio.

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