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 £1.34 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 £370,000 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 £2 million. 3i also backed the company, which received a total of less than £1 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 £40 million with over £1 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.