Industry: Food manufacturing
Product: Asset based lending (ABL) - invoice discounting, stock loan, property, plant and machinery finance, cash flow finance and bad debt protection
Facility size: £7.5 million
The organisation is a leading food manufacturer with a sizeable share of the market.
The owner needed to sell the business and Close Brothers was approached by the investment team with an opportunity to provide the right level of funds to facilitate the acquisition and ongoing working capital.
Close Brothers understood every aspect of the business, including their reputation and the quality of the customers throughout the UK. In addition, the management team demonstrated strong future business plans. As a result, we were able to offer a £7.5 million ABL arrangement, consisting of invoice discounting, funding against their stock, property and plant and machinery. In addition, top up cash flow finance was used in order to complete the deal and bad debt protection was put in place to safeguard any risk of potential bad debt from customers.
The acquisition will provide business continuity and enable continued growth. The original founder will continue to be involved with the business over the next few years on an advisory basis, and will retain a significant investment.