Monday August 19, 2019
FRP has secured unitranche and committed capex facility including an accordion option from Shawbrook Bank for Hereford-based beverage manufacturer and packager, Hereford Contract Canning, in a deal that will enable the business to invest in its future growth plans.
Hereford Contract Canning, which was recently acquired by private equity firm Rutland Partners, is the second largest contract canning provider in the UK. Founded in 2010, it provides canning services for a range of cider and soft drink brands including Corinthian Brands, Kopparberg, Dash and a range of other high profile drink brand manufacturers.
The refinancing package will enable the business to capitalise on market demand for flavoured beverages and ready-to-drink options, in addition to the industry-wide shift away from single-use plastics, by investing in its existing canning capacity to support long-term growth. It will also support the launch of a new production line that will substantially increase production capacity moving forward.
Tom Cox, Debt Advisory Partner said: “Hereford Contract Canning is a quality business and as demand for recyclable, bespoke and cost-efficient products increases it is well-placed to make the most of this trend. Within the market there is also a demand and supply imbalance for the delivery of small-to-medium size batch runs in the UK canning market, which with further investment Hereford can meet.
“It has been great working alongside the teams at Rutland Partners and Shawbrook Bank to develop a financial package that will allow the business to put growth plans into motion, and we wish the team the best of luck for the next stage of their growth journey.”