Supporting a buy-and-build strategy for a chilled food business with seasonal working capital required flexible funding. Paul Rablen explains how.
In July 2016, NFT Distribution – a UK chilled and ambient food logistics company – acquired NR Evans – a smaller, South Wales-based competitor. The deal valued NR Evans at about £20m. We provided a £13m debt package – a blend of asset-based and cash-flow lending. It incorporates an evergreen £8m receivables finance line and a £5m cash flow lending tranche.
EmergeVest, a Hong Kong-based sponsor, backed the secondary buy-out of NFT in April 2014 – its first deal in the UK market. We provided a £42m funding package to back that deal with follow on funding capability to support a buy-and-build strategy. The original package was designed to support the acquisition, working capital, small acquisitions and expansion capex. NR Evans is a much more significant acquisition than the original debt allowed for, but follow-on funding for future acquisitions was always our intention
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