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Scottish food manufacturer Strathmore Foods has secured investment from private equity firm Foresight Group to support its next phase of growth, following a management buyout.
The investment, made alongside existing shareholders, will help the Forfar-based business expand its product portfolio, develop new market channels and strengthen its position across the UK food supply market.
Strathmore Foods manufactures branded and private-label chilled and frozen convenience food products, producing approximately 15 million meals annually and employing more than 115 people.
Founded in 1973, the company supplies major UK retailers and owns McIntosh of Strathmore, Scotland's leading chilled ready meal brand, as well as Craft Mac Co. and Scottish Favourites.
As part of the transaction, former sales director Neil MacRae has been appointed managing director, responsible for leading the business into its next stage of development. Mark Steven, former managing director of Highland Spring, will also join the Board as Chair.
The investment will support growth opportunities across retail, foodservice and contract manufacturing, with a focus on building on the company's established customer relationships and manufacturing capabilities.
Julie Nisbet, director of Strathmore Foods, said: “Strathmore has been at the heart of our family for many years, and we are incredibly proud of the business we have built alongside our employees, customers and suppliers."
She added: “Most importantly, this partnership creates opportunities to invest further in our people, our customers and our capabilities, ensuring Strathmore Foods remains a leading food solutions provider, renowned for quality, innovation and service, for many years to come.”
MacRae said the investment would allow the manufacturer to build on its more than 50-year heritage while pursuing new commercial opportunities.
“With Foresight's support, we look forward to continuing that heritage while investing in new growth opportunities across retail, foodservice and contract manufacturing,” he said.
Ryan Finesy, senior investment manager at Foresight Group, described Strathmore as a high-quality food manufacturing business with a leading position in the Scottish ready meal market.
He added that the company's longstanding customer relationships and track record of growth provided a strong platform for further development.
The deal represents another investment by Foresight in Scotland's food and manufacturing economy. The group has invested more than £120 million in Scottish businesses across a range of sectors and transaction types to date.
The investment also highlights continued interest in established food manufacturers with strong retail relationships and opportunities to diversify across multiple sales channels, as businesses look to scale production capabilities and respond to evolving demand for convenience food products.
