Own-label cakes and desserts manufacturer BBF (Bright Blue Foods) has secured in £40m funding to support growth.
The supplier for retailers including Tesco, Sainsburys, Asda, M&S, Aldi and Lidl received the cash injection from Wells Fargo Capital Finance (WFCF).
Money from the financing facility will be used to drive investment at BBF’s manufacturing sites, after it increased its site portfolio last year with acquisition of Greencore’s ambient cake and chilled desserts division in Hull.
BBF now employs 2,000 staff across its five sites and has increased to more than £150m in annual sales since PE house Endless took ownership in 2015.
“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,” commented BBF CEO Jonathan Lill.
“Wells demonstrated great appetite throughout the process to support the business and we’re excited to have secured this new funding facility.”
Tom Weedall, director of loan originations, WFCF UK said: “Leveraging Wells Fargo’s platform, we are delighted to work with BBF. This funding facility will support their future working capital and growth requirements.
“Also, our tailored solution will enable BBF to continue to provide the highest level of service and award-winning products to their customers.”
Andy Pickford, debt advisory director at FRP Advisory in Manchester, said: “BBF is a high quality, market leading business, owned by a private equity sponsor that is at the forefront of investment into UK mid-market corporates. We are delighted to have been mandated by them to advise on this important financing.
“Pleasingly, 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.”