Aberdeen Development Capital has sold its 23 per cent stake in convenience store chain, Morning Noon and Nite, generating an IRR of 24 per cent over the ten-year life of the investment. The chain was sold to its management, led by CEO and founder Eddie Thompson, for GBP1.34 million.
Aberdeen Development Capital, managed by Aberdeen Murray Johnstone Development Capital, first invested in the company as a start-up in 1991. Including follow-on investments between then and 1995 the investor committed a total of GBP370,000 to Morning Noon and Nite. This was used to finance the company’s acquisitions and growth. Jock Gardiner, investment director at AMJPE, calculates that overall the investment has returned GBP2 million. 3i also backed the company, which received a total of less than GBP1 million in funding. 3i has made a partial exit at this time but retains a stake.
The chain is based in Dundee and now has 43 stores across North and Central Scotland. Current turnover for the company is GBP40 million with over GBP1 million in annual pre-tax profits. Following the sale, management plans to continue the organic growth of the business. Eddie Thompson’s acquisition of Morning Noon and Nite is funded by Bank of Scotland.