BOCM
Pauls – Ipswich based animal feed manufacturer has secured a £77 million
asset based lending (ABL) package with Lloyds TSB Commercial Finance which
will enable it to continue investment in production and support its ongoing
growth strategy.
BOCM
PAULS is a £500 million turnover business which was established in 1992. It
produces over two million tonnes of cattle, pig and poultry feed annually,
for livestock breeders in the UK and Europe.
The firm
employs 1,000 people in 20 mills located across the UK.
The
refinancing package is secured against the value of BOCM PAULS’ sales
ledger, property, plant and machinery and includes a £55 million accounts
receivable facility.
The
business continues to expand distribution of its animal feeds across the UK
and aims to open up a new plant before the winter feeding season commences.
James
Powell, finance director of BOCM PAULS, commented: “This improved funding
package gives us the facilities we need to support our growth strategy.
“Lloyds
TSB Commercial Finance has an established reputation in the ABL marketplace
and significant experience in sizeable and complex transactions.
“Completing a refinance in this difficult financial climate is a major
achievement and demonstrates the confidence that Lloyds TSB Commercial
Finance has in our business. We look forward to continuing our working
relationship with them.”
Peter
Anderson, business development director at Lloyds TSB Commercial Finance,
said: “BOCM PAULS is a dynamic business and its forward thinking
management team was keen to refinance with a flexible ABL facility to
support its growth in the medium to long term.
“We are
pleased to have committed to support the business over the next three years
with an innovative financing solution that will enable it to continue to
invest in its mills.
“The
ability to finance using a facility linked directly to the value of the
debtors and inventory is very attractive to working capital intensive
businesses like BOCM PAULS, as it enables the firm to borrow against its
existing assets to free up cash flow required to execute its growth
strategy.”
The
business was formed through a merger of BOCM Silcock and Pauls Agriculture.
