Leading UK dairy firm secures £8.7m funding deal
Southampton-headquartered Braeforge Ltd, a leading UK based dairy producer and distributor across the South of England, the Midlands and South Wales, has agreed a £8.7m refinance deal with Royal Bank of Scotland’s asset-based lending team to support a continued growth strategy.
Braeforge Ltd has experienced significant growth in the last five years and has nearly doubled in size to a £46m business through organic growth and acquisition.
The £8.7m asset-based lending facility provided by Royal Bank of Scotland will help the company with its ongoing growth strategy, as the management team continue to expand its UK product range and sales force to cement the company’s position as one of the UK’s foremost milk and dairy suppliers.
Established in 1975 as a farming partnership, Braeforge Ltd is one of the few remaining independent milk processors in the country. It has diversified in recent years to supply additional dairy products such as such as eggs, bread, flavoured milk, yoghurts, cheese, juices, UHT milk and cream and in total now has over 300 products lines in its foodservice offering.
The family run dairy firm which trades under the Pensworth and Kirby & West brands is a market leading milk processor and distributor supplying schools, hospitals, major convenience retailers, hotels, care homes and dairy wholesalers across the South of England. The company has a network of seven distribution centres supplying a significant customer base of both residential and commercial consumers, delivering to over a hundred thousand doorsteps every morning. Braeforge Ltd employs over 250 staff and is looking to continue to expand its operations to cover most of England and Wales.
The Company has also recently entered the international arena and now plans to export worldwide to countries including China, Vietnam, The Philippines, Malta, Singapore, Ukraine, Puerto Rico and Malaysia.
Arthur Dunne, managing director at Braeforge Limited, said:
“We are continually investing in our business to ensure we can meet the high expectations of our customers both in the UK and internationally, and therefore, it was important for us to work with a team who really understands the complex nature of our operations. We have been seeking a new finance partner to provide the appropriate refinance package that suits our ongoing growth strategy to become a market leader. The asset-based lending facility works well because it is releases working capital from our assets and grows in line with our business expansion giving us increased confidence to take on new contracts and expand our workforce.”
Martin King, corporate business development director, asset-based lending team at Royal Bank of Scotland, said:
“With a long established history, Braeforge is one of the few remaining independent milk processors in the country and we are delighted to be supporting their continued growth. The asset-based lending facility works really well for the business because it is secured against assets such as plant and machinery and property.”