Czarnikow plans £300m IPO amid ABF backing

Czarnikow, a UK-based food supply chain group with a history dating back to 1861, is preparing for a potential initial public offering (IPO) that could value the company at over £300 million. The firm is majority-owned by Associated British Foods (ABF) and Macquarie, each holding a 42.5% stake, while the remainder is owned by an employee benefits trust. The company has been actively engaging with prospective investors to assess interest in the IPO, which is expected to occur in the coming months. Czarnikow operates globally from 13 offices and has recently expanded its workforce by nearly 25%. The company has evolved from its roots as a sugar trader to encompass a broader range of services across the food supply chain, including food ingredients, energy, and packaging products. This diversification reflects the company's strategic response to market demands and opportunities. Bankers at Peel Hunt are facilitating early discussions with institutional investors to gauge their appetite for the IPO. While the exact amount the company aims to raise remains unclear, the backing from ABF and Macquarie positions Czarnikow favorably in the market. The involvement of these major stakeholders underscores the potential for a successful flotation. The planned IPO represents a significant step for Czarnikow, allowing it to access capital for further growth and expansion. As the company prepares for this transition, it aims to leverage its established market presence and operational capabilities to attract investor interest and secure a strong valuation.