Posted on 10 July 2013
Cooked and frozen meat products manufacturer, Snowbird Foods Ltd., has secured a refinancing facility through Invoice and Asset Based Lender, ABN AMRO Commercial Finance.
The funding, incorporating an Invoice Discounting facility, Plant and Machinery Term Loan and Enterprise Finance Guarantee loan, has enabled joint managing directors, Philip Paul and Albert McGovern, along with long serving sales director, Roy Anderson, to continue successfully running the business and purchase it from the Karro Foods Group.
Snowbird foods, based in Enfield, London, is the UK market leading producer of cooked and frozen sausages, also producing lines such as meatballs, stuffing and koftes. Snowbird indirectly provides products to customers including ASDA, Tesco, Sainsbury’s and Morrisons as well as leading companies within the travel, hospitality and leisure industries. It is EFSIS BRC accredited.
Snowbird Foods, originally Plumtree Foods, was sold to J and J Tranfield in 2007. Later that year VION bought an interest in the company, completing the acquisition in 2008. VION took the decision to concentrate on its Dutch and German markets, divesting its portfolio of UK companies in late 2012. This presented joint managing directors, Paul and McGovern, with the opportunity to place an MBO bid.
Albert McGovern comments: “Our product standards are extremely high. We have a well-earned reputation for quality and the integrity of our products has never been questioned. It’s because of this that some of the UK’s biggest manufacturers of ready meals and sandwiches and some of the bigger brands in the leisure, hospitality and travel industries are coming to us.
“With ABN AMRO’s commercial help, Philip, Roy and I have been given the opportunity to keep this great company thriving, and in the hands of people who are passionate about the products.”
Snowbird was able to successfully secure the funding needed for the MBO bid through a combination of sources, including leveraging the value of the firm’s plant and machinery, a mortgage, a confidential invoice discounting facility, an Enterprise Financial Guarantee loan and investing substantial personal money giving personal guarantees.
Teresa Geraghty, Business Development Manager at ABN AMRO Commercial Finance, comments: “We worked closely with Snowbird to create a bespoke funding mix that ensured the MBO could go ahead. Philip, Albert and Roy are all very passionate about the business, and this funding will provide the financial footing and confidence the business needs to achieve its ambitious goals under their ownership.”
Through David Nelson, Smith Cooper LLP provided corporate finance advice to the management team, and Ran Oren, Corporate Partner of Flint Bishop in Derby, provided legal services to ABN AMRO Commercial Finance. Debra Martin, a partner, of Geldards, provided legal services to Snowbird and help with financial planning and presentation was given by David Figg, of IT Figures Financial Consultants Ltd., of Denby Dale, Huddersfield.