The transaction includes all of Silver Spring’s business operations including Perfectly Clear, the leading flavoured water brand, and Silver Spring’s extensive retailer own-label and contract packing operations. With renewed focus, increased financial strength, and a new management team lead by Chairman Jonathan Halford and Managing Director Neill Cotton, Silver Spring is now well placed to develop its business as one of the UK’s leading manufacturers and marketers of soft drinks.

Following a two-month sale process lead by Deloitte LLP, The Silver Spring Mineral Water Company Limited was placed into Administration on 16th September, and the assets subsequently sold by the Administrators to Silver Spring Soft Drinks today.

As a result the new company has taken on all the employees, and will continue to supply all existing customers.
“This deal represents the best possible future for the business,” said Neill Cotton, MD of Silver Spring Soft Drinks Limited. “This is a fresh start for Silver Spring after a number of difficult years under its previous ownership. The new investment brought to the business by Privet Capital, together with their experience investing in business turnarounds, puts us in an excellent position to exploit many opportunities in the rapidly changing drinks market.”
“We are thrilled to have the opportunity to invest in Silver Spring,” added Steve Keating of Privet Capital. “We believe that Perfectly Clear and the business’s other brands, as well as the significant supermarket own-label business, will stand us in good stead to return to profitable growth. To this end, we have today invested several million pounds in the business to fund improvements to working capital, equipment and brands.”

NOTES FOR EDITORS
Silver Spring
The business of Silver Spring was established in 1870 and is one of the UK’s leading soft drinks businesses.
Silver Spring’s main brand is Perfectly Clear, the leading flavoured water. In addition, Silver Spring produces many retailers’ own brand products, including the successful Boots Shapers drinks, many of Aldi’s own-label soft drinks, and energy drinks for Tesco and others. Silver Spring manufactures and markets Weight Watchers soft drinks under license from Weight Watchers, Inc.

Silver Spring employs over 240 people at its site in Folkestone, Kent, and distributes its products nationwide.

Silver Spring Soft Drinks Limited
Silver Spring Soft Drinks Limited is a brand new company formed by Privet Capital LLP as a vehicle to buy the business and assets of Silver Spring. These assets were acquired from the Joint Administrators of The Silver Spring Mineral Water Company Limited on 17th September.

Silver Spring Soft Drinks Limited has taken on all Silver Spring staff, and has worked hard to put in place a plan to cause absolutely minimum disruption to all customers of Silver Spring. As far as staff and customers are concerned, the aim is something as close to “business as usual” as possible in the circumstances.

The Silver Spring Mineral Water Company Limited
This is the name of the previous company, which was placed in Administration on 16th September. Any creditors or other correspondence relating to this company should be directed in the first instance to the Joint Administrators, Nick Edwards and Neville Kahn of Deloitte LLP.

Privet Capital and Paradigm, specialists in turnaround situations, have taken a majority stake in Angora (2009) Ltd which has the right to trade under LOMBOK’s name.

Steve Keating, a partner at Privet Capital and newly appointed Chairman, LOMBOK, says:
“It is very much business as usual for LOMBOK. All existing orders will be fulfilled, day-to-day operations continue as normal, our excellent website remains fully functional and there will be no change to the trading name or store branding – in fact customers will notice little or no difference.”

William Landale has been appointed as CEO and founder Alex Cresswell-Turner will remain focussed on product development as Creative Director. Bill Gore will become a non-executive director.

William Landale, CEO, LOMBOK says:
“Whilst the recession has hit LOMBOK, as it has many other retailers, we have a great brand with significant opportunity to grow the business in the longer term. The existing management are fully behind the deal and we will now sit down with the new board to execute the strategy for the company.”

Myles Halley, restructuring partner at KPMG, added:
“Latest economic figures show that retailers are facing some of the toughest trading conditions in living memory. In such a challenging environment, the strongest brands will have a leading edge. The speed with which the sale was agreed is a testament to the strength of the LOMBOK brand and secures the jobs of 124 staff with minimal disruption to operations - a positive result for all parties.”