Member Article

Cranswick foods secures £120 million finance from banking syndicate

Cranswick plc, the East Yorkshire-based food producer, has secured a new £120 million finance package to support its growth strategy from a banking syndicate comprising of Lloyds Bank Commercial Banking, RBS and Yorkshire Bank.

The Hull-headquartered business has increased the size of its banking facility by £20 million, and can also draw on an uncommitted £30 million accordion facility if required.

The uplift in funding will support the company’s ongoing capital expenditure programme. Cranswick has invested more than £120 million in the last five years to improve operating processes and efficiencies across its manufacturing sites.

Established in the early 1970’s, Cranswick offers products including fresh pork, gourmet sausages, cooked meats, traditional dry cured bacon, gourmet pastry products, charcuterie and sandwiches.

For the financial year ending 31st March 2013, Cranswick posted revenues of £875.2m and recorded adjusted pre-tax profits of £49.3m. The company employs more than 4,000 staff across 12 sites in the UK.

Mark Bottomley, finance director for Cranswick plc, said: “This new banking agreement further strengthens our financial position and provides a solid platform for future growth.

“We have made a significant capital expenditure investment during the last five years as part of our focus on producing quality food products in modern, efficient and well invested sites. This enlarged facility ensures we have the headroom to continue with this approach.”

Richard Townsend, relationship director for Lloyds Bank Commercial Banking, said: “Cranswick has continued to grow thanks to its strong management team and well invested, highly efficient operations.

“The company is a significant employer and has a vital role to play in the expansion of the regional economy. It is typical of the types of companies we are committed to supporting in East Yorkshire.”

Sean Hale, corporate banking relationship director for Yorkshire Bank, said: “Cranswick plc is well-positioned to take advantage of opportunities in a growing market.

“As we begin to see signs of economic recovery, Yorkshire Bank remains focused on investing in the growth ambitions of the local business community.”

Ronald Bowron, senior relationship director for RBS Large Corporates Yorkshire, said: “We are delighted to continue to support Cranswick, we are especially excited to be able to support a successful Yorkshire-based food manufacturer with an attractive and expanding product portfolio and an ambitious high quality management team.”

This was posted in Bdaily's Members' News section by Clare Burnett .