Industry: Wholesale foods
Product: Asset based lending (ABL)
Facility size: £12.5 million
Business need: MBO and working capital finance
Elements of the deal: £10 million invoice discounting & £2.5 million stock loan
The business has been importing and distributing natural and organic food products to British stores for over 35 years.
The existing management team were looking for working capital and MBO funding, and Close Brothers Invoice Finance successfully tendered an asset based lending package consisting of a £9 milion invoice discounting line and a £1 million stock facility.
Since completion of the MBO, total facilities have grown to £12.5m to support increased turnover and relocation to new modern premises. This in turn has allowed the business to move away from wholesale distribution and focus on higher margin retail sales into UK supermarkets.
