New funding deal is icing on the cake

Background

Bright Blue Foods (BBF), a leading manufacturer of own-label and branded cakes and desserts whose customers include Tesco, Sainsbury’s, Asda and M&S, needed a new funding facility to support growth plans following a recent acquisition.

Blackburn-based BBF, owned by private equity investor Endless, had bought Greencore’s ambient cake and chilled desserts division in a move which doubled the group’s revenue to over £150 million, with more than 2,000 people employed across five sites.

Action

FRP was appointed to advise the company on securing a new group debt facility which would take into account the heavy seasonality of the businesses, and provide maximum flexibility to achieve its aims for strategic growth.

Outcome

Our Debt Advisory team were able to source a new three-year, £40 million asset-based lending facility for BBF, with limited financial covenants, from provider Wells Fargo Capital Finance. The financing facility provides day-to-day working funds for the enlarged group, along with headroom to allow for further investment into manufacturing facilities.

Andy Pickford, Director of Debt Advisory at our Manchester office which handled the deal, added: “There was significant interest from the finance community for this transaction, and the terms offered and underwritten by the team at Wells Fargo will now allow the management team at BBF to execute their exciting three-year plan.”

“The facility provided by Wells Fargo gives the business extra firepower to make further investment in all of our manufacturing sites and to deliver on our strategic growth plans. We’re excited to have secured this new funding facility.” Jonathan Lill, Chief Executive of BBF