Source:          Private Equity News

Retail firm gobbles up ex-Waitrose and M&S food head

Langholm Capital, a UK mid-market private equity firm focused on the retail sector, is preparing to take advantage of the potentially low prices on offer in the retail space after hiring a high-profile industry figure to help it invest its latest fund.

The firm hired Steven Esom, a former managing director of Waitrose and executive director of food for Marks & Spencer, as an operating partner last week.  Esom worked at Waitrose from 1995 for 12 years before joining M&S, where he left last summer.

He will sit on the board of portfolio company, Tyrrells Potato Chips and will advise others such as Dorset Cereals and cosmetics company, Lumene.  Esom will also sit on the firm’s investment committee to help with future deals.

Langholm first closed on its second fund at €165m ($230m) at the beginning of the year, so is able to begin investing the capital.  It is understood to be aiming to reach more than €300m for its final close.

Although the depressed state of the retail sector could provide some buying opportunities for the fund, numerous private equity firms owning consumer-facing businesses have been hit by the recession since March.

Debt-for-equity swaps have been seen at companies such as Finnish bathroom-product manufacturer Sanitec, owned by EQT Partners, French roofing company Monier, previously owned by PAI Partners, and estate agent Countrywide, backed by Apollo Management.

However, Esom said:  "Langholm has built a reputation for developing brands and not relying on over-leveraging companies."

Source:          The Sunday Telegraph

Ex-M&S boss hungry for deals

Steven Esom, the former head of food at Marks & Spencer, is leaving retailing for a career in private equity.

Mr Esom, who left M&S in July last year following a shock profit warning, has been hired by Langholm Capital, a small private equity firm.

He is expected to work part-time at Langholm, developing relationships with businesses in the food sector and pinpointing potential investment targets.

Mr Esom was seen as one of three senior executives in the running to succeed Sir Stuart Rose, M&S’s chief executive, before he was ousted last year.  The food boss had only been appointed to the retail group’s board in March, but left less than four months later, prompting sector analysts to claim the move highlighted "disarray" in M&S’s management team.

Since Mr Esom’s departure, speculation about M&S has heightened following the ousting of Carl Leaver, the former head of the retailer’s international business, in May this year.

Langholm’s investments include Tyrrells Potato Crisps, which it bought last April in a deal that valued the Herefordshire-based snack manufacturer at about £40m.

The private equity firm also owns Just Retirement, the financial services company, and Dorset Cereals, the high-end breakfast cereal maker. 

On acquiring Tyrrells last year, Oliver Wyncoll, a partner at Langholm, said:  "There are always businesses that can buck the trend and are good growth opportunities.  We are on the lookout for brands we can develop."

Source:          Sunday Times

From M&S to private equity

Steven Esom, the former head of food at Marks & Spencer, has taken on his first full-time role since being forced to leave the high-street stalwart last year.

Esom, who was also formerly managing director of supermarket Waitrose, has become a partner at Langholm Capital, a private-equity firm specialising in consumer-facing businesses.

The firm, which counts Unilever as a key investor, has backed companies including Dorset Cereals and Tyrrells crisps.  It is reportedly considering a bid for Gu, the chocolate dessert maker.  Esom is expected to join the Tyrrells board as a non-executive director.

Langholm hopes that Esom’s experience working with large grocery chains will help the companies it invests in when they negotiate with supermarkets.

Source:          The Grocer

Esom brings retail expertise to acquisition-hungry Langholm

Steven Esom will join private equity firm Langholm Capital as a partner next week, the Grocer can reveal.

Esom, who was abruptly fired in July last year by M&S CEO Sir Stuart Rose after only 13 months as director of food, is now free to join Langholm under the terms of his M&S contract.  Sources said Esom would be responsible for the operational side of the companies in Langholm’s £250m portfolio, which currently includes Tyrrells as well as outdoor furniture, skincare and cleaning products companies.

Langholm, owned by Unilever and Rabobank, made a killing when it sold Dorset Cereals last year to Wellness Foods for £50m after helping to expand sales of its luxury muesli from £4m to £30m.  It also successfully floated one of its investments on the AIM.  But its appetite for further aggressive investment was confirmed with the £30m acquisition of Tyrrells last May, as exclusively revealed in The Grocer in March, at a valuation of almost three times sales. Langholm’s partners, Bert Wiegman and Oliver Wyncoll are currently in the process of raising capital for a new fund, due to be completed later this year.

Esom, who earned more than £1.1m in his brief stint with M&S, will bring significant retail and consumer experience to bear on the post.  He is a former MD of Waitrose, but also held senior positions at Sainsbury’s, Texas Homebase and Hilton Hotels.  Both Esom and Langholm were unavailable for comment.

Source:          Farmos Press Release

Acquisition strengthens Farmos in the Baltic States

Farmos Ltd is the leading Finnish manufacturer of cleaning, disinfectant and industrial chemicals for professional customers.  On August 20 2007, Farmos Ltd acquired SIA Neobalt Grupa, a Latvian company in the hygiene and cleaning sector.

This acquisition strengthens Farmos’s market position throughout the Baltic States, since Neobalt operates also in Estonia and Lithuania.

"Neobalt’s leading market position in Latvia and its high level of expertise in hygiene supports our business objectives in the Baltic States," says Juha Saarinen, Managing Director of Farmos Ltd.  "Farmos aims to become the leading provider of hygiene solutions in its principal market areas - Finland, the Baltic States and Russia.  This acquisition supports our strategy of growth in food, kitchen and hospital hygiene and in professional cleaning throughout the Baltic States," he adds.

Neobalt, founded in 1998, was acquired by Farmos from its management, who together with the rest of the personnel now become Farmos employees.  The Neobalt business will be merged with the existing Farmos Baltic’s business into an organisation covering all the Baltic States.

Farmos Ltd

Farmos Ltd. Is the leading Finnish manufacturer of cleaning, disinfection and industrial chemicals intended for professional customers and of retail hygiene products.  Farmos serves customers in all sectors where cleanliness is required.  Farmos has a turnover of about €40m and some 260 employees.  Farmos Ltd. Is part of the LUMENE Group, a leading Finnish company in the techno chemical industry.

SIA Neobalt Grupa

Neobalt Grupa is a leading company in the hygiene and cleaning sector in Latvia.  Its principal customer groups are in the food industry and in the healthcare, cleaning and catering sectors.  Founded in 1998, the company has subsidiaries in Estonia and Lithuania and employs 13 people.

Source:          Just Retirement Press Release

Just Retirement Welcomes Continued Growth In Equity Release Market

Second quarter figures from SHIP show that demand for equity release has not been affected by the problems in the UK housing market, comments Just Retirement.

David Cooper, Marketing Director at Just Retirement said: "As a leading provider of equity release products in the UK, we are very pleased to see the growth in the market. Just Retirement strongly believes that equity release should be considered an integral component of retirement planning. Judging by these figures, it would appear that this is becoming the case.

We totally agree with Andrea Rozario in that the underlying fundamentals of equity release are different from the wider housing market and that demand is a function of falling pension provision and growing expectations of retirement combined with high levels of equity held in the home.

Just Retirement believes that the need to consolidate funding requirements in an expensive environment is currently playing a part in driving demand. Current predictions for the UK economy suggest that this factor will be important for some time. We are convinced that long-term demand will be robust and that awareness is growing of the opportunities to improve retirement that are presented by equity release We are certainly seeing a greater range of uses for the funds released by equity release. The prospects of customers having the security of more money in their retirement is particularly pertinent given the current economic climate.

The funding problems faced by the banks and building societies in the wholesale markets have been well documented. However, it is worth noting that providers, like Just Retirement whose funding is completely internally generated, have not been affected in the same way and we continue to offer competitive rates.

We are also pleased to see the continued growth in draw-down products within the equity release market as this is a positive sign that customers are receiving advice and planning ahead for the whole of their retirement. Just Retirement is a specialist in this area and we believe the growth of this sector will continue and stimulate further innovation in the flexibility provided for customers.

Source:          Just Retirement Press Release

Just Retirement Estimates Britain’s Retirees Are Missing Out On £500m Per Annum

Following the release of the FSA’s interim findings on the progress of the Open Market Option, Just Retirement today urged the industry to take greater steps to ensure that retiring customers are made more aware of the availability of the Open Market Option. The ineffectiveness of the current regime means that Britain’s pensioners could be missing out on over £500m per annum, Just Retirement estimates.

David Cooper, Marketing Director at Just Retirement comments: "This interim report is a real wake up call for all those involved in the retirement industry. The use of the Open Market Option is fundamental to the FSA’s principles of Treating Customers Fairly (TCF). Customers should be given simple, clear and unequivocal information about how they can shop around for the best annuity rate in addition to having their health taken into consideration. Disappointingly, there is continued evidence that customers are not being made aware of this aspect in the information they are being given by their pension providers.

"As increased numbers of people approach retirement it is even more vital that the OMO becomes commonplace. We calculate that retirees are currently missing out on £500 million per annum* by not using the OMO and being assessed whether they are eligible for enhanced annuity. For many this has a material impact on the quality of their lives in retirement.

"Just Retirement wholeheartedly supports this ongoing activity by the FSA, ABI and advisers to raise awareness of the OMO. Via our Campaign for Better Annuities we have witnessed first hand how committed advisers are to providing quality advice around the OMO, with over 4,500 having signed up to date. What’s needed now is for greater guidance to be made available to people coming into retirement, enabling them to make the right decisions for their retirement plans and to claim the retirement income that is rightfully theirs.

Source: The Grocer

Tyrrells To Get The Dorset Cereals Treatment

Premium crisps brand Tyrrells was snapped up by private equity firm Langholm Capital in April, with the £40m price tag proving the City still has an appetite for food companies with healthy growth prospects.

Langholm plans to double Tyrrells’ £13m sales within the next two years, investing millions of pounds in its Herefordshire facilities to boost capacity. A fourth production line will open up the market for the brand, allowing it to expand beyond the delis and farm shops where it made its name. It is already sold in Sainsbury’s, the Co-op and Waitrose.

New types of vegetable crisps are also in the pipeline. An increased focus on overseas markets should also help it achieve its sales targets.

The analogy between Tyrrells and Dorset Cereals - which Langholm sold to Wellness Foods for close to £50m in March is striking. The sale delivered a fourfold return on investment for Langholm, which used a packaging overhaul to reinvent Dorset. Tyrrells, however, already has a sound brand proposition, meaning the same treatment is not necessary, says Langholm. Instead, it will promote the brand at food festivals and play off the subsequent word-of-mouth advertising.

"The important thing is to be true to our original ethos," says the managing director. "We want to grow profitability, but in a sustainable way. We’re the only brand that owns its own farm, grows the potatoes and makes the crisps on site - from seed to chip. That’s why consumers have an emotional link to the brand."

Source: The Grocer

Product News: Langholm Eyes Serious Sales Growth At Tyrrells

Tyrrells is to ramp up its distribution through the multiples - and may even seek listings in Tesco - in an attempt to double sales in the next few years.

In an exclusive interview with the Grocer, new owner, private equity firm, Langholm Capital said that it hoped to "do a Dorset Cereals" with Tyrrells, which it bought last week for close to £40m.

"Tyrrells is not well distributed with sales mainly through delis and farm stores," said Langholm principal, Oliver Wyncoll. "We can pick and choose in what sequence we increase that and we plan to make it widely available through the independents and multiples as well as exports.

Although Wyncoll would not single out Tesco as a potential stockist, he said greater capacity would enable wider roll-out beyond Sainsbury’s and Waitrose.

Wyncoll said the £13m turnover company was poised for strong growth. The analogy with Dorset Cereals, which Langholm sold to Wellness Foods for close to £50m in March, was striking, he said, adding that Langholm hoped to achieve the same growth as with Dorset. The cereal brand increased sales by 50% in one year from £13m to more than £20m between 2006 and 2007 and delivered a four-fold ROI.

Langholm would significantly invest in facilities, in line with the £3m it ploughed into Dorset, he said. Innovation would focus on new vegetable crisp varieties. Building awareness of the brand would be key. As with Dorset, it would focus on "communicating the brand story" at food festivals and by word of mouth.

However, no packaging overhaul was planed. "With Dorset, a brand had to be created. Tyrrells is probably 18 months ahead of that."

Source: The Grocer

Langholm is eyeing more food brands

Despite fears of a deepening credit crisis, Tyrrells’ new owner Langholm Capital is hoping to snap up more food and drink brands.

Langholm, which acquired the premium crisps brand last week for about £40m (as revealed by The Grocer, 8 March), said it was not put off by the credit crunch.

"There are always businesses that can buck the trend and are good growth opportunities," Langholm principal Oliver Wyncoll told The Grocer. "We are on the lookout for brands we can develop. They don’t have to be niche players such as Tyrrells, as a mass market operator that has a good management team but is in need of brand development also makes a good strategic acquisition."

Langholm is intending to double the size of the £13m turnover brand.

Source:          The Manufacturer

Tyrrells founder sells up for £30m

The founder of premium crisp maker Tyrrells has sold his company to private equity firm Langholm Capital for £30m (€59m).

Six-year-old Tyrrells was the first to introduce root vegetable crisps to the premium crisp market - a market that has been growing increasingly popular, accounting for 15% of the overall crisp market, which is valued at £1.3bn.

The rapid increase in demand has mirrored consumer desire for better quality and healthier versions of the traditional crisp product.

Bert Wiegman, partner of Langholm Capital, said he will be looking to invest in improved production and distribution processes at the farm-based factory to allow the company to meet the rising demand.

Source:          Private Equity Online

Langholm Buys Upmarket Potato Chips

The consumer business mid-market buyout firm has bought Tyrrells Potato Chips, as buyout firms look to tap into the growing UK demand for more exotic products.

Langholm Capital, a UK consumer mid-market buyout firm, has bought Tyrrells Potato Chips, a UK crisp company.  Terms were undisclosed, but a City source said Langholm had paid more than £30m ($59.2m;€37.5m).

The business’ founder has retained a significant stake in the business. He has farmed potatoes in Herefordshire for the last twenty years and started making premium chips in 2002, using his home-grown potatoes.

The business has grown to a turnover of £13m in the year to March 2008.  The company’s products are distributed across the UK and abroad in farm shops, delicatessens, and other upmarket outlets.  Tyrrells uses more risqué potato varieties like Lady Rosetta to appeal to the growing demand in the UK for more exotic crisps, according to a spokeswoman.  The company has also developed parsnip, carrot and beetroot chips as well as flavours such as asparagus and crushed black pepper, and Ludlow sausage with wholegrain mustard.

The spokeswoman said: "It’s a great brand, that’s been doing well, and Langholm wants to take the business further by increasing production and then distribution."

Upmarket crisps have been popular with private equity firms, and buyouts include Lion Capital’s acquisition of Kettle Foods, a US maker of premium crisps and snacks, in 2006 for between $280m (€218m) and $320 million.  Other outfits have tapped into the UK demand for lifestyle food goods, such as Phoenix Equity Partners, which acquired organic box company Abel & Cole last year.

Langholm’s previous investments include Dorset Cereals, which under Langholm’s ownership became the second most popular muesli brand in the UK, as well as the fastest-growing mainstream breakfast cereal company overall in 2007, the spokeswoman said.  Although no financial details were disclosed, Langholm made a further four times return from the sale of Dorset Cereals in three years, according to a source close to the deal.

Set up in 2002, Langholm is investing its first fund of almost €250m ($395m), which was raised with the backing of consumer giant Unilever, and the specialist food and consumer goods bank, Rabobank International.

Langholm Capital acquires majority stake in Tyrrells Potato Chips

A potato farmer from Herefordshire, has pocketed about £30m ($59m) from selling Tyrrells, the premium crispmaker he founded six years ago, to Langholm Capital, the private equity company.

The deal, signed on Friday, values Tyrrells at about £40m, reflecting the fast-growing demand from consumers for a better quality and more healthy alternative to the ready salted crisps or pork scratchings that were once the staple diet of British snack eaters.

Langholm Capital, the mid-market buy-out fund backed by Unilever and Rabobank, aims to repeat the success it achieved with Dorset Cereals, the upmarket muesli brand that it sold last month for £50m, a four-fold return on its equity investment.

Bert Wiegman, partner of Langholm Capital, said: "This trend of people wanting better quality, more healthy, more organic and better packaged products is one that we see across different sectors."

The market for premium crisps, dubbed "chips", is growing at double-digit rates and now accounts for about 15 per cent of the entire £1.3bn crisps market, which has been stagnant for several years.

Kettle Chips was the first to pioneer a premium chip product, forcing Walkers to respond by launching its own Walkers Sensations brand. Tyrrells was the first to introduce root vegetable chips, made from beetroot, parsnips and carrots.

Mr Wiegman said he planned to invest in improving Tyrrells distribution and production systems to allow it to cope better with fast-growing demand at its factory. Tyrrells had sales of £13m in the year to March.

Source:          Real Deals

Langholm Sells Dorset Cereals

Langholm Capital has sold Dorset Cereals to Wellness Foods in a deal valued at around £50m (€64m).

Langholm led the management buy-in of the muesli manufacturer in April 2005.  The firm has quadrupled its money on the deal.

"This was already a perfectly healthy and tasty breakfast cereal before we bought it, but the problem was that no one knew about it," said Langholm co-founder Bert Wiegman.  "We have done all this without spending any money on advertising."

Langholm rebranded the product and built a new packaging plant.  Sales are understood to have increased from around £4m three years ago to £30m in 2007.  The head count has doubled to more than 100.

Wellness Foods is backed by Irish racing tycoons JP McManus and John Magnier.

Source:          Just Retirement Press Release

Just Retirement Recommends "Shopping Around" As Watson Wyatt Study Predicts UK Annuity Market To More Than Double By 2012

Just Retirement today welcomed the findings of Watson Wyatt’s in-depth study of the future of the in-retirement market in the UK which predicts that the market for financial products in this segment will more than double within five years to over £30 billion a year.

Watsons’ research shows a significant increase in the number of people retiring over the next five years, resulting in growth of almost 20% per year in funds being applied to retirement products such as annuities and income drawdown.

Just Retirement believes that this accelerated growth coupled with increasing awareness of the opportunities presented by the in-retirement market are encouraging indicators for the continued prosperity of the annuity market and, in particular, the enhanced and impaired segment of the market.

In 2007, only 9.9% of Open Market Option contracts were written as enhanced or impaired annuities. Just Retirement has consistently estimated that enhanced and impaired products could be applicable to 40% of those reaching retirement.

Additionally, the research clearly demonstrates that there will be significant growth in the number of people reaching retirement. This places greater emphasis on the need to shop around for the best possible income, helping to ensure that people have the opportunity to enjoy the retirement they have always wanted.

Just Retirement believes that companies who truly understand the needs of older customers are uniquely placed to provide the right products and the right services to ensure that the phenomenal growth predicted comes to fruition.

David Cooper, Marketing Director at Just Retirement commented:

"This report is clearly encouraging news for companies such as Just Retirement who have an established track record in the provision of innovative retirement solutions for customers who are at or in retirement. It underpins our own research within this area but, potentially, underestimates the scale of growth in demand for enhanced and impaired products."

He added:

"It is clear that, for many people, their hard earned pension fund may not be enough to ensure a comfortable retirement. It will be vital that, as the ’baby boomers’ retire, they are aware of the full range of options available to them and have the opportunity through quality advice to extract maximum possible value from their accumulated pension fund.

This is a market that cannot be ignored and Just Retirement is committed to developing practical ways that help IFAs grow their annuity business. We passionately believe that everyone should have the right to access the Open Market Option and they should get the necessary full support to enable them to make an informed choice, based on their individual circumstances, including their health. Through The Campaign for Better Annuities we are committed to continuing to press for these outcomes and a better deal for consumers."

Source:          Private Equity Online

Langholm Breakfast Investment Pays off

The Unilever-backed fund has made four times its money on its investment in fast-growing Dorset Cereals where employee numbers have doubled.

Langholm Capital, a mid-market consumer business specialist, has sold Dorset Cereals to Wellness Foods for four times its original investment into the branded muesli producer.

It acquired the business in April 2005.  No financial details were disclosed.

Since then the brand has been re-launched both in the UK and overseas and extended into other cereal categories: porridge, flakes and cereal bars.  In 2007, total branded sales nearly doubled, with Dorset Cereals becoming the number two muesli brand in the UK, as well as the fastest growing mainstream breakfast cereals company overall.

Langholm Capital invested in the business in both the factory and in brand development, with the number of employees more than doubling to more than 100

Dorset Cereal’s senior management team of Peter Farquhar, Nigel Horsman and Patrick Horton will remain with the business and will continue to be significant shareholders in the business with Wellness Foods supportive of management’s plans.

Bert Wiegman, partner of Langholm Capital, said in a statement: "The success demonstrates the benefits of Langholm Capital’s focused approach of investing in high growth consumer facing companies and supporting management teams who can produce above average returns."

Langholm Capital was advised on the transaction by McQueen and Travers Smith.

Langholm Capital is currently investing from a fund of €242 million, with Unilever, a leading FMCG company and Rabobank, the AAA-rated food and agri specialist bank, as its principal investors.  It focuses on businesses that are strategically positioned to capitalise on opportunities arising from emerging consumer and demographic trends, as well as fundamental changes currently taking place in consumer lifestyles and priorities.

Source:          FT.com

Wellness Foods bites into Dorset Cereals

Dorset Cereals, the upmarket muesli brand challenging Alpen for top spot on UK supermarket shelves, has been bought by Wellness Foods, a health food group backed by JP McManus and John Magnier, the Irish horseracing tycoons.

The £50m ($101m) purchase of the fast-growing muesli maker is an early success for Langholm Capital, the mid-market buy-out fund backed by Unilever and Rabobank.  It acquired Dorset Cereals from its founder in 2005 for a fraction of today’s price.

Wellness Foods is a privately owned food group that has been snapping up some of Britain’s best-known healthy eating brands including Rowse Honey, Grove Fresh, the organic juice company, and Fruit Bowl, the fruit snacks brand.

The Dorset Cereals deal was completed on Friday, according to market sources, generating a four-fold return on the equity investment of Langholm, which raised its maiden €250m (£193m) fund in 2002.  Langholm was advised by McQueen.

Dorset Cereals is the fund’s second exit after it floated Just Retirement, in insurer for the elderly, in 2006.  Wellness was advised by Spayne Lindsay & Co.

Describing its product as "honest, tasty and real", Dorset Cereals was rebranded under Langholm’s ownership.  It recently built a new packaging plant to present its product in more upmarket cardboard box sachets. Langholm invested about £3m in the brand.

Bert Wiegman, co-founder of Langholm said: "This was already a perfectly healthy and tasty breakfast cereal before we bought it, but the problem was that no one knew about it.  We have done all this without spending any money on advertising.

Sales of Dorset Cereals in the UK are thought to have increased from about £4m three years ago to almost £30m last year.

Wellness Foods, which also owns the "I am Fresh" smoothie brand, is backed by Lydian Capital, a Swiss-based private equity firm backed by Mr McManus, Mr Magnier and Dermot Desmond, the Irish financier.

Langholm will start raising a new fund later this year as its maiden fund is now more than 75% invested.

Source:          Private Equity Europe

UK - Langholm Sells Dorset Cereals

Langholm Capital has sold muesli brand Dorset Cereals to Wellness Foods for 50m, generating a reported 4-fold return.

Since it was acquired by Langholm in 2005 Dorset Cereals has become one of the fastest growing breakfast cereal brands.  Wellness Food is based in Windsor and is parent to UK companies in the healthy food and drink sector.

Wellness Foods bites into Dorset Cereals

Dorset Cereals, the upmarket muesli brand challenging Alpen for top spot on UK supermarket shelves, has been bought by Wellness Foods, a health food group backed by JP McManus and John Magnier, the Irish horseracing tycoons.

The £50m ($101m) purchase of the fast-growing muesli maker is an early success for Langholm Capital, the mid-market buy-out fund backed by Unilever and Rabobank. It acquired Dorset Cereals from its founder in 2005 for a fraction of today’s price.

Wellness Foods is a privately owned food group that has been snapping up some of Britain’s best-known healthy eating brands, including Rowse Honey, Grove Fresh, the organic juice company, and Fruit Bowl, the fruit snacks brand.

The Dorset Cereals deal was completed on Friday, according to market sources, generating a four-fold return on the equity investment of Langholm, which raised its maiden €250m (£193m) fund in 2002. Langholm was advised by McQueen.

Dorset Cereals is the fund’s second exit after it floated Just Retirement, an insurer for the elderly, in 2006. Wellness was advised by Spayne Lindsay & Co.

Describing its product as "honest, tasty and real", Dorset Cereals was rebranded under Langholm’s ownership. It recently built a new packaging plant to present its product in more upmarket cardboard box sachets. Langholm invested about £3m in the brand.

Bert Wiegman, co-founder of Langholm, said: "This was already a perfectly healthy and tasty breakfast cereal before we bought it, but the problem was that no one knew about it. We have done all this without spending any money on advertising."

Sales of Dorset Cereals in the UK are thought to have increased from about £4m three years ago to almost £30m last year.

Wellness Foods, which also owns the "I am Fresh" smoothie brand, is backed by Lydian Capital, a Swiss-based private equity firm backed by Mr McManus, Mr Magnier and Dermot Desmond, the Irish financier.

Langholm will start raising a new fund later this year as its maiden fund is now more than 75 per cent invested.

Source:          Dorset Business South

Cereal Thriller As Firm Celebrates Success

Dorset Cereals is supplying its mini packs to guests at airports and top hotels.

The Poundbury firm’s breakfast foods are being served at Claridge’s in London in the Virgin Clubhouse at Heathrow.

The developments come after the company took honours at two leading food awards and won a Queen’s Award.

Spokesman Patrick Horton said:

"We have had an excellent year with our mini packs and we’re thrilled to working with leading names such as Claridge’s and Virgin.  We are committed to making delicious cereals.

"Our much-loved muesli and fruity porridge recipes plus our new fruit-packed chunky slices and low fat naturally light flakes are all made using the best, deliciously tasty, natural ingredients possible.  Our beautiful little mini packs are now enjoyed in five-star city hotels, country bed and breakfasts or on warm farmhouse kitchen breakfast tables."

Dorset Cereals received four awards at the Great Taste Awards and Taste of the West Awards.

Source:          Dorset Echo

Five-Star Hotels Now Serving Dorset Cereals’ Product

Dorset Cereals is supplying its mini packs to guests at airports and top hotels.

The Poundbury firm’s breakfast foods are being served at Claridge’s in London and in the Virgin Clubhouse at Heathrow.

The developments come after the company took honours at two leading food awards and won a Queen’s Award.

Spokesman Patrick Horton said: "We have had an excellent year with our mini packs and we’re thrilled to be working with leading names such as Claridge’s and Virgin.  We are committed to making delicious cereals.

"Our much-loved muesli and fruity porridge recipes plus our new fruit-packed chunky slices and low fat naturally light flakes are all made using the best, deliciously tasty, natural ingredients possible.  Our beautiful little mini packs are now enjoyed in five-star city hotels, country B&B’s or on warm farmhouse kitchen breakfast tables."

Dorset Cereals received four awards at the Great Taste Awards and Taste of the West Awards.

Source:          The Grocery Trader

Dorset Cereals - Seen In All The Top Spots

Mini packs of cereal from Dorset are now enjoyed by guests at some of the UK’s most glamorous hotels and airport lounges.  Dorset Cereals, now the second largest muesli brand in the UK, is being served to guests at London’s celebrated Claridge’s and Heathrow’s Virgin Clubhouse, which was recently presented with the Best Business Class Lounge Award (World Airline Awards 2007).

"We have had an excellent year with our mini packs and we’re thrilled to be working with leading names such as Claridge’s and Virgin.  We are committed to making delicious cereals.  Our much-loved muesli and fruity porridge recipes plus our new fruit-packed chunky slices and low fat naturally light flakes are all made using the best, deliciously tasty, natural ingredients possible.  Our beautiful little mini packs are now enjoyed in five-star city hotels, country B&B’s or on warm farmhouse kitchen breakfast tables," said Patrick Horton from Dorset Cereals.

Dorset Cereals recently received four awards at two of the country’s leading food award schemes, the Great Taste Awards and Taste of the West Awards, for products in its range of premium cereals.  The recipes available at Claridge’s and the Virgin Clubhouse include Really Nutty Muesli, Super High Fibre, Super Cranberry, Fruit, Nuts & Seeds, Berries & Cherries, Organic Fruit, Nuts & Seeds and Tasty Toasted Spelt.

Source:          The Telegraph

Dorset Cereals In Crunch Sales Plan

Dorset Cereals, the healthy upmarket cereal brand favoured by the chattering classes, is heading for a sale that could value the business at more than £50m.

Buyout group Langholm Capital has appointed corporate finance house McQueen to advise on strategic options.

Poundbury-based Dorset Cereals is likely to attract interest from a wide range of trade buyers, such as Wellness Foods, the privately owned health foods group whose investors include Lydian Capital, a private equity firm backed by Irish horseracing tycoons JP McManus and John Magnier.

Wellness Foods has set about buying a string of Britain’s healthy food brands, such as Rowse Honey and organic juice company Grove Fresh, and industry sources said it is keen on buying Dorset Cereals.

Other potential buyers could include major cereal players such as Weetabix, which is owned by private equity firm Lion Capital.

Weetabix owns muesli brand Alpen and is likely to be interested in Dorset Cereals as it has grown to become the second most popular muesli brand in Britain with a market share of 20%.  The company has also recently launched a variety of products including a cereal bar, porridge and flakes.

Dorset Cereals, sold in America through retailer Whole Foods Market, was founded 20 years ago but only moved into the premium cereal brand market after a management buy-in backed by Langholm Capital.

Unusually, the success of the brand has been achieved by managing director Peter Farquhar and his team without any advertising campaigns.

None of the parties involved would comment.

Source:          Lumene Press Release

Lumene to increase exports through online shopping from October

Lumene is launching an online shop today, October 8, 2007, aimed particularly at consumers in EU countries in which Lumene products are not yet sold.

User experiences of the logistics of the online shop will be collected in Finland first before extending deliveries to all EU countries in November.

Extensive range available safely over the Internet

There will be a direct link to the online shop at the www.lumene.com website.  User-friendliness and ease of ordering were key factors in planning the online shop.  Even the most inexperienced internet user will easily be able to find the products best suited to them.

The shop website is visually appealing and structurally clear. There are various search functions: users can search for products by product group or for products meant for a certain age group.  There is an extensive range of Lumene skin care products and cosmetics available.  Lumene for Men products are of course also prominently displayed.  The ordering process is safe: payment is made through online banking over a secure connection.

Online shop is an additional service for consumers

The popularity of online shopping has increased, and Lumene is offering its online shop as an additional service for consumers who for whatever reason are unable to buy Lumene products in an ordinary shop or are unable to go shopping at all.  Busy employees can order their cosmetics to be delivered directly to their workplace, parents at home with children can make their purchases quickly and easily online, and users can even have Christmas presents delivered straight to the recipient’s doorstep.

Just Retirement, the specialist in enhanced annuities for people such as smokers who are not expected to live as long as others, more than doubled sales in the year to June to GBP676.8m.
The company, which floated on Aim at 148p at the end of last year, reported pre-tax profits up from GBP22.6m to GBP61.6m and declared a maiden interim dividend of 0.6p.

Mike Fuller, founder and chief executive, described current events in the banking sector as "not unhelpful" to future growth. "We are confident our market share will continue to increase in an already growing market as the competition steps to one side."

The company, launched only three years ago, is the number one provider of enhanced annuities, which account for about 10 per cent of the total market, worth more than GBP10bn a year. It sold annuities worth GBP551.6m last year.

The remaining GBP125.2m of sales came from equity release schemes, in which it also claims market leadership. Mr Fuller said the equity release division acted as a natural hedge to the annuities business, making the company immune to changes in interest rates.
Earnings per share rose from 6.4p to 16.1p.


FT Comment
- The shares added 45p to 222p as the results exceeded expectations. However, they have a long way to go to reach the 12-month high of more than 300p struck after flotation. On forecasts of pre-tax profits of about GBP75m this year, the prospective multiple is 11. Considering the growth prospects, the shares look undervalued. This small company’s fate has become mistakenly entangled in the financial sector malaise. However, it is well run and conservative and has found a sweet spot in the market just as the baby boomer generation starts to reach the age of 50.

Secondary placing of ordinary shares in Just Retirement (holdings) PLC

Langholm Capital, the private equity group, announces that Deutsche Bank AG, London Branch ("Deutsche Bank" or the "Manager") has, on behalf of funds advised by Langholm Capital (the “Langholm Shareholders”), placed 30,035,508 ordinary shares in Just Retirement, representing in aggregate approximately 10.2 per cent. of the issued share capital of Just Retirement (the "Placing").  The ordinary shares have been placed at a price of 275 pence per ordinary share, raising gross proceeds of approximately £82.6 million. Settlement for any ordinary shares purchased pursuant to the Placing will be made three business days following announcement of pricing, and is expected to take place on 30 March 2007.
 
Following completion of the Placing, the Langholm Shareholders will in aggregate hold 151,663,488 ordinary shares in Just Retirement, representing in aggregate approximately 51.6 per cent. of the issued share capital of Just Retirement.
 
The ordinary shares retained by the Langholm Shareholders remain subject to the existing lock-up undertakings agreed at the time of the initial public offering, which restrict any further disposals or transfers of such shares prior to 5 December 2007, subject to certain exceptions as noted in Just Retirement’s AIM admission document dated 29 November 2006.
 

Source:          Reuters UK

Langholm Sells £83m stake in Just Retirement

Deutsche Bank said on Tuesday it had placed 30 million shares in British insurer Just Retirement at 275 pence apiece, raising gross proceeds of £82.6m ($162m).

Deutsche Bank placed the shares, which account for about 10.2% of Just Retirement’s total, on behalf of private equity firm Langholm Capital, which now holds a 51.6% stake in the business.

Langholm Capital invests in Cane-Line and Sika-Horsnaes, two leading Danish furniture specialists focusing on woven indoor and outdoor furniture

Cane-Line A/S andSika-Horsnaes A/S, two specialists in woven furniture, have experienced tremendous growth, as demand for modern outdoor furniture has soared.The companies’ Scandinavian design has an international appeal, and today the companies export to more than 50 countries across the world. While outdoor furniture comprises a significant part of sales, the companies recently introduced a new indoor range, which has been very well received by designer conscious customers.

Overthe last five to seven years, the home improvement market has demonstrated a strong growth. Notably, demand for outdoor furniture, outdoor heaters and BBQs has surged, as more and more people are extending their living space outdoors.

Langholm Capital has been following the home improvement market for a long time and was particularly attracted to Cane-Line and Sika-Horsnaes given their impressive historic growth performance and strong niche position in Scandinavia.

The investment in the two companies represents Langholm Capital’s 6th investment from its current fund. The investment is consistent with its strategy of focusing on high growth consumer facing businesses that are well positioned to benefit from long term consumer trends and Langholm’s access to world class consumer research, strategy and brand building skills.

The two owners and Managing Directors, Knud Andreasen and Brian Djernes, retain a majority equity stake in the companies and will also continue as MDs. Commenting on the acquisition: Knud Andreasen & Brian Djernes (Joint Managing Directors)
“After several years working on optimising our supply chain and having gained a good foothold in a number of export markets, we felt that it was time to take the companies to the “next level”. We wanted to do that together with a professional partner who understood the process of developing a brand internationally and building a framework for the next growth phase.

Langholm understands our business well and was very focused during the entire process, and we quickly identified how they can add value going forward.”
 
Christian Lorenzen (Partner,Langholm Capital) “The management of Cane-Line and Sika-Horsnaes have developed a good platform for exploiting the potential within this high growth market. They have an exciting collection of high quality, premium furniture which is maintenance free leveraging on the convenience trend; the intention is to strengthen the distribution outside Scandinavia and to further improve the relationships with its core customers. We are particularly pleased to be investing alongside Knud Andreasen & Brian Djernes, given their experience and dedication to growing the companies.”
 

Source:          Lumene Press Release

Lumene is By Far The Most Trusted Colour Cosmetics Brand in Finland

The Reader’s Digest Trusted Brand study has, for the seventh time, found Lumene to be Finland’s most trusted colour cosmetics brand.  Lumene received 52% of the mentions in its own category in Finland.

People who trust the Lumene brand tend on average to be more satisfied with their lives, more optimistic, perceptive and modern.  About 24,000 respondents took part in the study, the seventh of its kind, carried out in 15 European countries.  In Finland over 1,300 subscribers to Readers’ Digest took part in the study.  The study investigated the respondents’ most trusted brands in 38 different product groups.

Respondents explained what their most trusted brand was and then assessed four of its characteristics on a scale of 1-5.  The characteristics were: quality, reasonable price, powerful brand image and understanding of consumer needs.  The study used open-ended questions to find the trusted brands.

The product development of Lumene colour cosmetics and skin care products is inspired by the Nordic climate and its changing seasons.  Lumene products use raw materials from the Nordic wilderness combined with advanced technology.  Lumene is the clear market leader in Finland with about a 30% market share in cosmetics products in Finland.

Source:          Lumene Press Release

Lumene To Cooperate With One Of The Largest Department Store Chains In The USA

Lumene and the American department store chain Target have developed a partnership.  Target is one of the largest department store chains in the USA and is listed on the New York Stock Exchange (NYSE).  This agreement will increase the number of outlets where Lumene products are sold in the USA to over 7,000.  LUMENE Group products have the widest distribution of all Finish consumer goods sold in the USA.  Last year, sales of Lumene products in the USA grew by almost 30%.

Lumene products will be available at about 1,500 Target stores from March.  The Target store network covers almost all of the states in the USA.  As a pilot project, Lumene products have been on sale in 30 Target stores in the USA over the past 6 months.

According to Target, Lumene products enhance the chain’s cosmetics selection, as the store’s business concept is to offer its customers high-quality cosmetics products under the slogan "Expect more, pay less".  Surveys show that Target is the second most popular retail chain in the USA.

"American consumers have welcomed Lumene.  Lumene cosmetics offer a unique combination of advanced technology and natural raw materials from the Arctic.  The pilot clearly demonstrated that Lumene products provide added value for Target customers," explains Joe Pastorkovich, Vice President of LUMENE North America.

Lumene on sale at two national chain stores

American consumers can now buy Lumene products at two national chain stores in the USA, CVS/pharmacy and Target.  Lumene launched its cooperation with the CVS retail chain over three years ago, and Lumene products are now available in over 6,000 CVS stores. Lumene set up its own North American subsidiary in 2006.

"The USA plays a significant role in our growth strategy.  We are extremely satisfied with our comprehensive chain of distribution in the USA.  Our partners recognize our assets, which are the Lumene products containing effective Arctic raw materials and the enthusiastic response from American consumers and also that our company is able to listen to and meet the needs of American consumers explains Tapio Pajuharju, President and CEO of the LUMENE Group.

FACTS: Lumene in the USA

·         Available at over 7,000 stores all over the USA

·         Products on sale at CVS/pharmacy and Target stores

·         Lumene set up a subsidiary in the USA last year

·         LUMENE North America is headed by Joe Pastorkovich

·         Sales of Lumene products in the USA grew by almost 30% in 2006

·         The best-selling Lumene products in the USA are Lumene Time Freeze Targeted Wrinkle Treatment and Lumene Vitamin+ Radiant C-Energy Age-Defying Intensive Care

Source:          Financial Times

Just Retirement Sales Boom From Equity Release

Just Retirement, the specialist life assurance group, doubled quarterly sales amid strong growth in demand for mortgage equity release schemes. 

Group sales in the last three months of 2006 rose three fold to £166.5m and sales for the first half of the financial year reached £309.6m, more than was made in the entire 2005-6 period.

Mike Fuller, chief executive, was pleased with the results but highlighted the fact that the company was still young and was starting from a lower base.

"Just Retirement has been in existence for just two years," he said.

"The comparison to last year’s figures is a comparison to a period when we had only been going a year and were very much in our start-up mode.

"Our growth is a combination of our attractive products and our reputation for service."

The group provides financial services to people in and approaching retirement.

Its two main products are equity-release plans, which allow people to remortgage their properties, and pension annuities.

Just Retirement is a leader in the provision of enhanced annuities, which provide a higher rate of income to subscribers with illnesses or lifestyle choices, such as smoking, that might lead them to die earlier than healthy people.

Mr Fuller estimates that up to 40% of retired people are eligible for enhanced annuities.

At present, however, enhanced annuities only comprise 8% of the pension annuity market.

"We now have over 50% of the enhanced annuity market and we are a market leader in the equity release market," he said.

"From here, our enhanced annuity market will be growing at a more modest level, but our equity-release business is likely to product some pretty sparkling figures."

Shares in Just Retirement advanced 9½p to 233½p yesterday.

Source:          FT Adviser

Just Retirement Floats

Just Retirement has successfully floated, raising £87m after just two years in its existence as a life company.  The expected market capitalisation of Just Retirement on admission to the Alternative Investment Market was £422m.  It floated at 148p a share.

Mike Fuller, chief executive of Just Retirement, said: "We are delighted with the high level of interest that institutional investors have shown in Just Retirement.  This is a significant endorsement of our track record, market position and strategy and we are pleased with investors’ confidence in our business for the future."

Bert Wiegman, director of Just Retirement and partner of Langholm Capital, which has funded the life company since it was launched in 2004, said:  "As a continuing shareholder in Just Retirement, we are very pleased with the response from investors during this process.  We believe that the company has the products, management and strategy to deliver value for its shareholders over time, and are pleased that the offering has been well supported by the wider market."

Just Retirement has also announced the appointment of Andy Humphreys in the newly-created role of brand and communications manager.

Source:          Financial Times

Lifestyle Choice Behind Just Float

Smokers and others who enjoy or suffer from unhealthy lifestyles are driving growth at Just Retirement, a specialist in enhanced annuities that is raising £50m on AIM.

The company, advised by Deutsche Bank, is expected to have a market value approaching £400m, making it the largest financial services company to list on the AIM this year.

Conditional trading begins today and the shares are expected to be priced at the top of the 128p to 148p range.

Enhanced annuities provide a higher rate of income on the basis that the recipient will be paid for a shorter length of time.  They can generate up to 20% more income a year than standard annuities.

Just Retirement, which also sells equity release schemes, was founded two years ago by Mike Fuller, former chief executive of Britannic Retirement Solutions.  In the year to June 30 it reported sales of £297.9m, while in the quarter to September sales were £143.1m, more than three times the previous first-quarter level.

Source:          FT Adviser

Specialist Life Assurance Group Could Be Worth £400m if Mover Goes Ahead

Just Retirement set to float on AIM Index.  Just Retirement has announced its intention to apply to float on the Alternative Investment Market in a move that is expected to value the company at up to £400m.

The firm has already applied to the junior stock market and is at present going through the hoops and final approval is expected by the end of December.

The specialist UK life assurance group will focus on the provision of financial services to those at or in retirement.  Mike Fuller, Chief executive of Just Retirement, said: "It is to make sure we have got a strong balance sheet to support the cycle of growth in the forthcoming years. What we are trying to do is create a firm capital base for the firm."

"The strategy is to enhance its product offering and take advantage of growth."  Mike Fuller, chief executive of Just Retirement.

Just Retirement recently signed a three-year deal with Saga to provide advice on equity release products to the Saga customer base.  It has agreed to provide enhanced annuity quotes to The Exchange, an IFA portal, as the sole enhanced annuity provider at launch of their real-time quote service.

The move will involve the issue of new ordinary shares to institutional investors, worth about £50m.  The proceeds will be used to provide capital to fund the future growth of Just Retirement and to expand its distribution capability.

Just Retirement was established in April 2004 by Mr Fuller and certain other members of the senior management team, with backing from Langholm Capital.

The total UK annuity market was worth £7.9bn in the year to 31 December 2005, having shown compound annual growth of some 6%.

The equity release market was worth some £1.1bn in the year to 31 December 2005 and is forecast by data provider Mintel to grow to about £3.5bn by 2010.

Mr Fuller said: "The strategy is to continue to enhance its product offering to take advantage of growth within its core markets and to gain competitive advantage through further development of new products, distribution channels and its technology platform."

The management team has considerable experience within its chosen markets and includes previous senior management from Aviva, Bradford & Bingley, Barclays, Canada Life, Nationwide Building Society, Stalwart Assurance and GE Life.

Source:          Real Deals

Langholm-Backed Just Retirement Plans AIM Float

Just Retirement, the specialist UK life assurance company backed by Langholm Capital, plans to list on AIM by the end of this year.

The company will seek to raise £50m (€75m) in proceeds through the issue of new ordinary shares.

The book-building process is likely to take place at the end of this month, and is expected to predominantly attract interest from UK institutional investors, according to Langholm partner Bert Wiegman.

"If any existing shares are sold, then this will only be done to provide the liquidity required for the listing.  We are not disposed to be a vendor," he said.

Langholm acquired the company two years ago and holds an 80% stake.

Proceeds will be used to fund growth and expand distribution capacity.

"With regards to growth, you could say the company’s hit the deck running," said Wiegman.

The listing will also provide Just Retirement with "additional profile" beyond that of a private equity portfolio company, Wiegman added.

Established in 2004 by chief executive Mike Fuller, Just Retirement has established itself in the enhanced annuity and equity release markets.  In the medium term, it intends to broaden its range of retirement-related financial services to include care funding assurance, inheritance tax planning packages, life assurance for those over 50 and income-producing investments.

Deutsche Bank has been appointed sole global coordinator, sole bookrunner, nominated adviser and broker in connection with the transaction.  Fox-Pitt Kelton is acting as co-lead manager.

The listing will be Langholm’s first on AIM.  Langholm, set up in 2002 and manager of a €240m fund, counts Unilever and Rabobank among its principal investors.

Source:          Just Retirement Press Release

6 November 2006

Just Retirement (Holdings) PLC
("Just Retirement" Or "THE COMPANY")

INTENTION TO SEEK ADMISSION TO AIM OFFER OF ORDINARY SHARES

Just Retirement, a specialist UK life assurance group focusing on the provision of financial services to those at or in retirement, today announces its intention to apply for admission to AIM ("Admission"). Just Retirement’s intention is to raise approximately £50 million through a placing of new ordinary shares and there is also intended to be a placing of existing shares in the Company (together, the "Offer").

HIGHLIGHTS

·         Just Retirement is seeking to raise approximately £50 million through an issue of new ordinary shares to institutional investors. The proceeds will be used to provide capital to fund the future growth of the Company and to expand the Company’s distribution capability.

·         Just Retirement was established in April 2004 by Mike Fuller, the current chief executive, and certain other members of the senior management team, with financial backing from Langholm Capital.

·         Since opening to new business in 2004, Just Retirement has developed key positions within the fast-growing enhanced annuity and equity release markets. The Company reported total sales (audited) of £297.9 million in the year to 30 June 2006, its second year of operation, while in the quarter ended 30 September 2006, the company made total sales (unaudited) of £143.1 million, over three times the value made in the quarter ended 30 September 2005.

·         Just Retirement believes that there is considerable potential for growth within its core markets:

o        the total UK annuity market was worth some £7.9 billion in the year to 31 December 2005 (source: ABI) having shown compound annual growth of some 6 per cent. Since 2000; the Company expects similar levels of growth to continue over the medium term;

o        the total UK equity release market was worth some £1.1 billion in the year to 31 December 2005 (source: SHIP) and is forecast by Mintel to grow to approximately £3.5 billion by 2010.

·         Just Retirement’s strategy is to continue to enhance its product offering to take advantage of growth within its core markets and to gain competitive advantage through further development of new products, distribution channels and its technology platform. Just Retirement has:

o        recently signed a three-year agreement with SAGA to provide advice on equity release products to the SAGA customer base; and

o        agreed to provide enhanced annuity quotes to The Exchange, a leading IFA portal, as the sole enhanced annuity provider at launch of their real-time quote service.

·         Just Retirement’s management team has considerable experience within its chosen markets and includes previous senior management from Aviva, Bradford & Bingley, Barclays, Canada Life, Nationwide Building Society, Stalwart Assurance and GE Life.

·         Subject to market conditions, it is anticipated that Admission will take place before the end of December 2006.

Mike Fuller, Chief Executive of Just Retirement, said:

"The market for financial solutions for people at and in retirement is large and is forecast to grow rapidly. We believe there is a real need to offer tailored products that are adapted to reflect individual circumstances and requirements. We focus on providing high quality products and services to address this demand. I look forward to continuing to lead the company as we grow and develop the business further."

Bert Wiegman, Partner of Langholm Capital, said:

"We are delighted with the progress that Just Retirement has made since our investment. The flotation will provide the Company with the capital to take its development to the next stage and supports further growth. We believe that the Company has substantial opportunities and we look forward to continuing to provide our support as a shareholder."

Deutsche Bank AG, acting through its London Branch at Winchester House, 1 Great Winchester Street, London EC2N 2DB ("Deutsche Bank") has been appointed as sole global co-ordinator, sole bookrunner, nominated adviser and broker in connection with the Offer and Admission. Fox-Pitt Kelton Limited has been appointed as co-lead manager.

Further announcements in relation to the Offer will be made in due course, as appropriate.

- ENDS -

Source:          Private Equity Online

Date:               6 November 2006

Just Retirement Applies for AIM

Just Retirement has applied for admission to AIM, in a move that a source says will deliver a substantial paper return for Langholm Capital.

Just Retirement, which focuses on the provision of financial services to those at or in retirement, will raise about £50m (€74.6m; $94.8m) through an issue of new shares to institutional investor.

Admission is expected before the end of December.

Langholm Capital, typically a long-term investor, has held the investment for two years and will remain for a total of three to five years.  The figure it will take off the table is unknown, but partner Bert Wiegman said it would not be a large number.

Wiegman said: "This is an exercise in floating the company on AIM and raising £50m to fund the future growth of the company."

The company’s value is also unknown, but AFX News reported it to be £300-400m.

Deutsche Bank is the sole global co-ordinator, book runner, nominated adviser and broker in connection with the admission.  Fox-Pitt Kelton is the co-lead manager.

Tom Cross Brown and Peter Hales have been appointed as non-executive directors in preparation for the admission.

Cross Brown is non-executive chairman of Just Retirement.  He previously held the positions of global chief executive officer of ABN AMRO Asset Management and Chairman of ABN AMRO Asset Management in the United Kingdom.

Hales was previously a director of Norwich Union Life, CGU Life and General Accident Life.

Just Retirement opened to new business in 2004.  The company reported total sales of £297.9m in the year to 30 June 2006, its second year of operation.

Majority owners Bert Wiegman, Andrew Beaton and Christian Lorenzen founded Langholm Capital in January 2002.

Langholm Capital invested £24.5m in Just Retirement in August as part of an overall £60m funding package.  The package handles £35m of reinsurance finance from German Insurance firm Hannover Re and Interpolis, an insurance subsidiary of Dutch Rabobank, alongside a £500,000 commitment from management.

Just Retirement has recently signed a three-year agreement with SAGA to provide advice on equity release products to the SAGA customer base; and agreed to provide enhanced annuity quotes to The Exchange, an IFA portal, as the sole enhanced annuity provider at launch of their real-time quote service.

Just Retirement’s management team includes previous senior management from Aviva, Bradford & Bingley, Barclays, Canada Life, Nationwide Building Society, Stalwart Assurance and GE Life.

Retirement Assurance Firm Seeks AIM Float

Just Retirement, a firm specializing in financial products for the retirement market, is seeking to raise around £50 through floatation on junior market Aim before the end of the year. The move could value the company founded by entrepreneur Mike Fuller, at between £200m and £300m.
Fuller is expected to make between £30-40m from the float, although he initially plans to sell only a fraction of his 10 per cent holding.

The company is a specialist life assurance group focusing on the provision of financial services to those at or in retirement and it believes that there is considerable potential for growth within its core markets. The total British annuity market was worth some £7.9m in 2005 and has show annual growth of around 6 per cent since 2000, according to industry research.

Fuller said: “The market for financial solutions for people at and in retirement is large and is forecast to grow and develop the business further.” The company reported total sales of £291.9m in the year to 30 June 2006 and unaudited sales of £143.1m in the quarter to 30 September 2006 which was more than three times growth year on year.

Source:          Lumene Press Release

Lumene Distribution In Russia To Expand by almost 300 sales points

Lumene’s distribution channels on the Russian market will expand considerably following the contract made with the Kurs Group which owns the L’Etoile and Sephora retail chains.  The Lumene cosmetics brand will be included in the selections at 260 L’Etoile stores and 12 Sephora stores.  The first Lumene distribution at 50 L’Etoile sales points in Russia will start on November 15, 2006, and it will expand into the other sales points of the chain between January and March 2007.

In addition, Lumene products will be sold at 100 new stores in the L’Etoile and Sephora chains that will be opened in Russia in 2007.

Lumene has strong distribution channels on the Russian market

Lumene will expand its distribution in Russia in cooperation with the rapidly developing trade in all the largest cities in the country.

L’Etoile and Arbat Prestige are the two largest cosmetics retailers in Russia, both competing for market leadership and expanding their businesses rapidly.  In Russia, Lumene is one of the Arbat Prestige chain’s key brands in cosmetics with an annual growth of 51%.

Growth and expansion in the organized modern trade is proceeding rapidly in Russia.  Retail trade chains are expanding into regional growth centres.  At the same time, society is becoming more middle class and, owing to the low income tax, purchasing power is increasing rapidly.

After including the L’Etoile and Sephora chains in its distribution channels, Lumene will have a total of approximately 6,000 sales points in Russia.

In Finland, Lumene cosmetics are sold at approximately 650 sales points.  Lumene is widely distributed in the US as well and its products are sold at over 6,000 stores in the CVS/pharmacy drugstore chain.

Source:          Financial Times

Bad Habits Can Lead to a Healthy Income

Smokers, drinkers and the obese enjoy better rates because annuity providers are banking on them not living long.

Healthy individuals face shrinking pension incomes as the increased popularity of enhanced annuities, which offer better deals to people likely to die younger, is piling further pressure on to already low standard rates.

Rates on standard annuities - which pay a set annual income for the remainder of your life in return for payment of a lump sum - have been squeezed by increasing life expectancy and low interest rates.  They are now likely to sink even further as individuals with lower life expectancies, such as smokers, diabetics and obese people, are fleeing the traditional market in hunt of better deals from specialist enhanced annuity providers.

Enhanced annuities provide a higher rate of income as providers work on the basis that they will be paying out for a shorter length of time.  They work along the same lines as impaired life annuities, which target people with severe medical conditions such as cancer, although enhanced rates can simply be aimed at people with unhealthy lifestyles.

Providers say people who qualify for an enhanced annuity could gain up to 20% more income per year, compared with the best rates on standard annuities.

Standard rates have traditionally been calculated using a cross-section of risk, so people who die earlier effectively subsidise those who live longer.  The concern is that without the extra capital from less healthy people who die before they have used up their full pension fund, annuity providers will have to lower the rates for people who do not qualify for an enhanced deal.

Stuart Bayliss, director of Annuities Direct, says annuity providers are increasingly assuming that most of the people who qualify for the enhanced rates are taking them.  They are therefore cutting rates for those who remain in the "standard rates pool".

"If someone qualifies for an enhanced rate but has remained on a standard rate then they are missing out on a better deal and effectively paying a premium for doing so," says Bayliss.  "With pressure already on rates people may as well get the best deal they can at retirement."

The best standard annuity rate for a healthy 65 year old male is now around 7.1%.  Five years ago it was 8.6%.  Rates are also in danger of becoming even less competitive as A-day pension changes have given people with pensions of £15,000 or less (for this tax year) the ability to take their entire pot as a cash lump sum.  This may hurt standard annuities as people with smaller pension pots tend to have shorter life expectancies.

According to the latest figures from the Association of British Insurers, people with enhanced or impaired annuities account for around 10% of the market.  But annuity providers believe that up to 40% of people taking out annuities could actually quality for a better rate.

Bayliss says that while five years ago a smoker might have got 5% or 6% more than the best rate for a non-smoker, now they could get a premium of up to 15%.  Just Retirement, which underwrites around half of the enhanced and impaired annuity market, says the number of conditions or ailments that could grant someone access to an enhanced rate has risen by around 50% to 1,500 over the past year. They now include conditions such as hypertension, lung complaints and high cholesterol.

Also, the number of enhanced annuity providers is growing.

Many niche providers have sprung up, while large insurance groups such as Legal & General and Prudential have entered the market and Scottish Equitable is planning to do so soon.

Nigel Barlow, technical and commercial manager at Just Retirement, says the current low take-up of enhanced annuities reflects a lack of awareness, and also the fact that people can be reticent about discussing their own illnesses.

"Going down the route of enhanced or impaired annuities really brings home the fact that they might not have long to live," he says.

Also, the idea of getting a better deal if you are unhealthy is the total reversal of what people are used to before retirement, when applying for life or medical insurance.  Providers say people may not realise that the fact that they smoke or are overweight, can in the case of annuities, help them get more money.

A large proportion of people who have saved for a pension automatically take their annuity from their pension provider for ease, or because they are unaware that they have the option of taking their money elsewhere.

According to recent research by the ABI, only around a third of people shop around when taking an annuity.

If you think you might qualify for an enhanced annuity speak to your financial adviser or a specialist annuity provider.  Typically you will be asked to fill in a medical questionnaire but you will probably not be required to undergo a full medical examination.

Having it Large with Porridge

Dorset Cereals has launched a range of porridge in anticipation of a cold winter.  It has developed three premium varieties - apple & raisin, fruit & nut and mixed berries - that it said catered for a more discerning consumer. They are made from jumbo porridge oats and Scottish oats with a blend of fruit and nuts and take up to three minutes to prepare.

Peter Farquhar, MD, said: "Porridge is a significant area of growth within cereal, with increased interest in health making people choose more natural porridge."

Source:          Lumene Press Release

35 Years Of Hair Cosmetics Brand Cutrin

Finnish hair cosmetics brand Cutrin - the only publisher of Scandinavian hair fashion news - will celebrate its 35-year history as spokesperson and expert for Nordic hair fashion and design on May 23 at the Kamppi Event Center in Helsinki.  The anniversary fashion show held at the Kamppi Event Center will present Cutrin hair fashion over the decades (1970-2000) accompanied by music, fashion clothes and spectacular dance routines to bring back memories of each particular decade.  The gala will culminate in a presentation of the Cutrin Sweet Drama Look for the coming fall.  The Sweet Drama Look takes hair fashion back to the stylish elegant 1940s with deliciously seductive shades of chocolate and violet.

Success both at home and abroad

"35-year-old Cutrin really deserves this celebration - it is one of the leading hair cosmetics brands in the Nordic countries and it has carried out long-term work to promote Finnish hair and hair design since the 1970s.  It is the only real expert in its field on the Scandinavian hair-type and climate.  As a result of this, the company has experienced strong growth - last year the profits for the Cutrin Business Unit developed favourably and grew 22%.  Cutrin now operates in the entire area that surrounds the Baltic - in Finland, the Nordic countries, the Baltic states and Russia.  For many years Cutrin was the distributor for the largest brand on the market in this sector and this historic competitive status has made Cutrin better known internationally that it is in Finland.  Today, approximately 80% of its business comes from the Finnish, Norwegian and Russian markets.  We have been focusing strongly on globalization while humbly recognizing the importance of our domestic market.  Consumers have probably already noticed that we have taken up the challenge of rising to the top of the Finnish market, too," explains LUMENE Group President and CEO Tapio Pajuharju.

"We have 10 active export countries and almost 300 professionals working full time to promote the Cutrin brand and there is enormous international potential.  For example, in Norway, we are already among the most popular hair cosmetics brands.  Our aim is to continue our successful growth and to make the Cutrin brand into a successful business unit worth approximately €50m.  We have a good team and we are proud to be the only publisher of Scandinavian hair fashion news - we publish Cutrin Look twice a year.  In addition to launching hair trends and new products, Cutrin also carries out important work to promote Scandinavian hair design by providing continuous training for hair styling professionals," explains Pasi Anttila, Vice President of the Cutrin Business Unit.

35 years of promoting Scandinavian hair design

High-quality product development technology and over thirty years of expertise in the Scandinavian hair-type and scalp go into Cutrin products.  All Cutrin products have been developed and produced in Finland especially for the Scandinavian hair-type and the demanding Scandinavian climate.  The product range comprises lines for both professional hairstylists and for consumers.

Cutrin products are sold in Finland at hair salons and in the hairstyling departments of large department stores.

The force behind Cutrin is the LUMENE Group, an innovative and rapidly globalizing producer of top-quality products in beauty care and hygiene.  Lumene Cosmetics and Farmos are also LUMENE Business Units.

New Cereal Packs Stand Out - and Up

Dorset Cereals’ range has had a packaging revamp to help them stand out - and up - on shelf. Rolling out now, the matt-tone boxes replace the range’s clear plastic bag packs, which kept falling over and made the products difficult to see on shelf, according to the company.

The new design also features leaf-shaped peepholes so that shoppers can view the contents. The existing five recipes have been reformulated with extra fruit, nuts and seeds, to create less dust in the packs, while a Berries & Cherries variant has joined the line-up. It combines raisins, sultanas and cereals with raspberries, blackcurrants, cherries, cranberries and blueberries.
  
Peter Farquhar, MD, said the new packs contained more cereal and were easier to store, open and re-close. "Feedback about the recipes has always been positive," he added. "But customers reported that they often couldn’t find the cereals in shops because the packs were always falling over on the shelves and, once they got home, they had to decant the cereals into new containers. "These packs not only look great, but are also much more user-friendly."

Source:          Lumene Press Release

LUMENE Group Founds A Subsidiary In The USA

Cosmetics and hygiene product manufacturer LUMENE Group has founded a subsidiary in Boston, USA.  American Joe Pastorkovich has been appointed the head of the new company LUMENE North America.  LUMENE Group’s cooperation with CVS/pharmacy, America’s largest drugstore chain, will increase further, the goal being to conquer the US beauty care markets.

LUMENE North America LLC officially started operations on February 1 2006.  The company is headed by the American Joe Pastorkovich who has broad experience in the US beauty care markets, at Beiersdorf and Kao Brands Inc.  In addition, the US business and the Lumene brand will be built by Export manager Merja Paavolainen from Finland who has been appointed Key Account Manager with responsibility for CVS.

"The subsidiary is our next step in the American market.  We believe that in order to achieve international success we need to be present and close to our customers.  In this way we can also ensure the building of the Lumene brand and quick reactions to any changes in the market.  The USA plays a major role in our strategy of profitable growth and internationalization.  With our own organization we can better influence brand building in accordance with the Lumene concept and development of a product mix that responds to the wishes of American consumers.  Close cooperation with CVS is a tremendous opportunity for us", says Tapio Pajuharju, President and CEO of LUMENE Group.

"The Lumene brand has a unique position in the US cosmetics market, and our growth potential is really great.  According to a survey, nearly 70% of our American customers like Lumene products very much.  Our successful cooperation with CVS will expand in the future", says Joe Pastorkovich, Vice President of LUMENE North America.

The number of Lumene retail outlets in the USA has tripled in a little over two years

LUMENE Group has collaborated with CVS/pharmacy in the USA since 2003.  During a good two years of cooperation with CVS/pharmacy, the number of retail outlets carrying Lumene cosmetics has tripled.  Lumene products are available in 5,400 CVS stores, of which 3,500 offer the full Lumene product range:  skin care, makeup and body care.  The latest launches are the Lumene for Men range and the Lumene Premium Beauty range for demanding 50+ skin care.

There is plenty of growth potential, as CVS has some 65 million Extra Care regular customers and conducts very frequent direct marketing to its regular customers.  CVS/pharmacy strengthened its position by acquiring 700 Av-on and Osco stores from Albertsons Inc; after the acquisition CVS/pharmacy has a total of 6,100 stores.

In addition to the USA the greatest growth is sought in the Russian market

LUMENE Group has already previously announced that it will focus on fewer business areas and extend its operations to the international markets.  The greatest growth is sought in the American and Russian markets.  The goal of the company is to double its turnover over the next five years.  LUMENE Group strengthened its position in Russia last year by acquiring the company’s long-time partner Multilink Trading LLC’s business operations related to Lumene cosmetics and Farmos.

Source:          Lumene Press Release

Lumene - The Most Highly Rated Cosmetics Brand Among Finns

Lumene has risen to a position among the 50 brands that Finns rank the highest.  This is evident from a survey on rating product brands conducted in 2005 by market research company Taloustutkimus Oy and Markkinointi & Mainonta (a Finnish magazine for professionals in marketing and advertising) measuring how Finns ranked a total of 876 brands.

Lumene is the only cosmetics brand among the 50 most highly ranked brands, making it the cosmetics brand that Finns value the most.  Lumene is also a longstanding market leader in the Finnish cosmetics sector (Source:  AC Nielsen Scan Track).

Up by more than 100 places

For Lumene, the climb is significant, rising by more than 100 places from 187^th position last year to 47^th this year.

"In February, we launched a redesigned world and look for the Lumene brand, and the name of the entire company was changed to LUMENE Group, which in accordance with our strategy has reinforced the brand’s status among Finns.  We are extremely pleased with the vote of confidence the brand has received, and will continue to invest heavily in developing the brand," says Tapio Pajuharju, CEO of LUMENE Group.

This year, Fazer (a brand for bakery products and confectionery) dropped down to 10^th place after reigning at number one for a number of years, and Arabia, Fiskars, Hackman, Nokia and Fairy stole the top-five slots.

The sample for the survey on rating product brands carried out by Taloustutkimus and Markkinointi & Mainonta magazine was taken from the population register, and corresponds to the 15-79 year-old population in terms of sex, age and domicile, with the exception of Aland.  The survey was carried out in the form of a questionnaire which was sent by post and contained further information for the respondents.  The survey was carried out for the ninth time, and the results were published in Markkinointi & Mainonta magazine (No. 28/2005) at the end of September 2005.

Source:          Lumene Press Release

A new radiant brand image for Lumene

In 2005, Lumene cosmetics’ 35 year old position as prestigious quality brand will be crowned with new exciting product launches and a new radiant brand image.

The new Lumene communicated radiance, which ever person has inside.  The unique radiance and personal features are easily emphasized and highlighted with Lumene cosmetics products.

Lumene - The Secret of Nordic Beauty

Along with the new brand image, Lumene has launched its new signature slogan "The Secret of Nordic Beauty."  This sentence wraps up the special character of Lumene cosmetics: expertise in Nordic beauty and the traditional scientific knowledge behind the natural raw materials of skin care and colour cosmetics products.

Innovative and up-to-date product development combined with technical knowledge of skin and climate are a good explanation for the continuing success of Lumene cosmetics.

Source:          Financial Times

BRS Team Launch Just Retirement

The team that ran Britannic Retirement Solutions has re-entered the retirement product market with a company specialising in enhanced annuities and equity release.

The company, Just Retirement, was conceived by former BRS chief executive Mike Fuller.  He is generally credited with introducing the smoker’s annuity - offering higher rates for reduced life expectancy - for Stalwart in 1995, later sold to GE Life.

BRS more than doubled its turnover to £362m in 2002 from £166m in 2001 by competitive pricing in the enhanced annuity market before closing to new customers in November last year.

The new company is offering financial products targeted at the at-retirement market.  It is focusing on enhanced pension annuities - aimed, like the smoker’s product, at those with pre-existing medical conditions leading to a reduced life expectancy - and equity release schemes.

Retirement investment products represent an area of strong growth.  Watson Wyatt, the actuary, projects that the overall annuity market, which was at £7.4bn in 2003 will grow at 10% a year during the next 10 years, with enhanced annuities, which accounted for 7% of the annuity market in 2003, growing at 16% a year.  However, since BRS’s closure, the market for enhanced rates has narrowed significantly.

Mr Fuller, chief executive of Just Retirement, said: "The enhanced annuity market represents 10% of the market when it should be nearer 40%".

He added: "The difference between the annuities on offer is huge with income varying by as much as 40%.  Growing markets need competition and we will be able to drive that competition."

Mr Fuller said that Just Retirement, which has £60m of funding behind it, has significant corporate backing to make it work.

Langholm Capital, a private equity firm focused on mid-market investments in European consumer companies has invested £25m and another £35m has come from Hannover Re, one of the largest reinsurance groups in the world and Interpolis, an insurance subsidiary of Rabobank.

Bert Wiegman, a partner at Langholm Capital, said "We are interested in businesses that are strategically positioned to capitalise on opportunities arising from emerging demographic trends, such as the ageing of the UK population, and Just Retirement fits perfectly into this investment criteria."