Bibby provides $5.5m asset-based lending facility to Sprout Organic Foods, Inc.
Bibby Financial Services, Inc announces a $5.5m asset-based lending facility to Sprout, a developer, marketer and distributor of premium organic foods. The financing will allow the company additional cash liquidity to support projected growth. Sprout, which pioneered the launch of the organic pouch segment with a focus primarily on organic baby food, recently expanded its product offerings to toddler and adult products and is looking toward expected growth.
According to a 2015 report by Allied Market Research, the global baby food market is estimated to garner a revenue of $72.7bn by 2020. Specifically, prepared baby food is the second-largest market globally and is projected to grow the fastest during the next several years. Based on this anticipated need for working capital, the company’s private equity partner, North Castle Partners, approached BFS to explore financing options to increase working capital resources.
Barry Kastner, executive vice president, Bibby Financial Services, said:
“We are pleased to have been selected by North Castle Partners and Sprout as a funding partner and have been impressed with the professionalism and commitment to growth exhibited by both. Fortunately, each recognised that we thrive in funding situations where persistence and flexibility can lead to growth for our clients.”
This story originally appeared in The Secured Lender Magazine.