Gü founder aims to sell stake in premium puddings firm

Gü founder James Averdieck says he is confident of selling a "substantial stake" in his premium desserts and snacks firm by the autumn.

Averdieck stressed that, while a controlling stake in the £25M turnover business was potentially on offer, the intention was "not to sell the entire business. The ideal partner would be able to take us into new areas, both in terms of geography and products", he explained.

Gü is being advised by Cavendish Corporate Finance and said the offer had generated interest from private equity firms and trade buyers. "It's early days, but we expect the process to be finished in the autumn," said Averdieck.

Gü had successfully penetrated some overseas markets - including Ireland, Belgium and France - which accounts for 20% of sales. However, it did not have the scale to realise its international ambitions without a serious cash injection, said Averdieck.

"We had a couple of [unsolicited] approaches earlier this year and rather than pursue them we thought we'd have a look at what our options were. Sales are growing 20% year-on-year, so we're approaching this from a position of strength, but we're still a relatively small business. We've got to the stage where if we want to realise our ambitions, we need more investment and resource."

But Averdieck - a former marketer and management consultant who built Gü from scratch in 2003 and quickly achieved listings in all major UK supermarkets - added there was considerable untapped potential in the UK. "We've always been quite heavily geared towards London, the south east and Scotland, but there is room for us to grow strongly in the Midlands, Yorkshire and Lancashire."

Gü withdrew from frozen foods in 2007 after disappointing sales of its ice cream and chocolate bombe products. However, it has barely erred in its six-year history, with successful launches in premium puddings, chocolates, cakes, tortes, trifles, fruit-based desserts (Frü) and the new 'Naughties' range of ambient indulgent snacks.

More products were also in the pipeline in confectionery, indulgent hot chocolate drinks and milkshakes, said Averdieck.