Leumi ABL Client Case study - Argent Foods Group

February 2020

Leumi ABL has completed a structured ABL deal for facilities totalling £74m with Argent Foods Group, an £765m revenue diversified international food group focused on the fresh fruit, food supply and meat processing markets.

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Argent Foods Group

Leumi ABL Client Case study - Argent Foods Group

February 2020

Leumi ABL has completed a structured ABL deal for facilities totalling £74m with Argent Foods Group, an £765m revenue diversified international food group focused on the fresh fruit, food supply and meat processing markets.

Leumi ABL worked closely with Argent Foods, their debt advisor Alvarez and Marsal, and the incumbent provider Lloyds Bank to accede to a £74m club lending facility comprising £55m invoice discounting, a £10m revolving credit facility and a £9m term loan.

Argent’s corporate headquarters are in London with operations in Europe, North America, Africa and Australasia.

John Oldcorn, Argent’s Group CFO, added: “I am delighted to have Leumi ABL join our bank club as we continue to grow the business.  I was impressed with how quickly the Leumi team was able to understand the business and the speed of their decision making process.  Leumi ABL’s overall approach, including with respect to the final structure, showed a flexible and entrepreneurial attitude throughout that mirrors the culture of the Argent business.”

Rob Wakeford, Leumi ABL Regional Sales Director, said: “We were really impressed with the Argent business and are pleased to have entered into a new long term relationship with it.  This approach of stepping into an existing facility demonstrated our ability to take a flexible approach to asset based financing alongside Argent’s debt advisor.  Entering the club facility as a joint lead represents the first step in supporting the Argent team as they continue growing the business.”

Leumi ABL were advised by Osborne Clark with the banking group advised by Addleshaw Goddard. The Company was advised by Squire Patton Boggs. European Valuations undertook the asset appraisal.  Alvarez and Marsal were the retained debt advisors.

Past Client Case Studies

Dodson & Horrell Group

Dodson & Horrell Group

November 2019

Leumi ABL completes financing deal with Dodson & Horrell

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Dodson & Horrell Group

Dodson & Horrell Group

November 2019

Eighty years ago Dodson & Horrell Group began developing and producing the best possible animal feed on the market.  The business has now grown to become one of the UK’s most trusted leading horse and pet food suppliers.

Dodson & Horrell has recently refinanced with Leumi ABL via a structured £14.5m ABL facility to support future growth plans.

Richard Anderson, Managing Director at Dodson & Horrell, commented: “We were clear from the outset that working with an asset based lender would enable the business to secure the right facilities for investment and growth.  After speaking with contacts within the professional community we contacted a select number of recommended ABL’s and from the very outset Leumi ABL set a pace and responsiveness that stood them out from the competition.  Throughout the process our Regional Sales Director was always in contact letting us know what was happening, breaking down the options and offering thoughts on how to structure the funding to best suit our current business needs.  His personable approach struck a chord early on and when backed up by a well thought through debt package at really competitive prices we were sold.  During the process our finance team were introduced to the wider Leumi support team who would ultimately take on the day to day management of our account, the training and support they offered coupled with a feeling they understood our business instantly added to our confidence that we had found the right partner.  We look forward to growing our business with the support of Leumi and investing in innovative product development to keep ourselves at the forefront of our markets.”

John Walsh, Leumi ABL Regional Sales Director, added: “The structure of our ABL package provides a solid funding base from which Dodson & Horrell can drive future growth aspirations.  Once again we were able to structure the deal and demonstrate our refreshing approach, flexibility and timely response, enabling Leumi ABL to be the preferred funding partner.”

Rivus Fleet Solutions

Rivus Fleet Solutions

October 2019

Leumi ABL completes £30m deal to support the acquisition of the UK’s number one commercial fleet management business

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Rivus Fleet Solutions

Rivus Fleet Solutions

October 2019

Leumi ABL has provided a £30m invoice discounting facility to support Aurelius Equity Opportunities’ acquisition of industry leading end-to-end commercial fleet management operator, BT Fleet Solutions from BT Group Plc.

Headquartered in Solihull, Rivus Fleet Solutions delivers a comprehensive suite of services to blue chip customers, via its national network. Established in 2002, Rivus Fleet Solutions employs around 950 staff around the UK, and manages more than 80,000 vehicles for over 26 blue chip customers across diversified industries.

Leumi’s £30m finance facility was used to complete the acquisition and will provide ongoing working capital.

The divestment of BT Fleet Solutions aligns with BT’s ongoing transformation programme and strategy of focusing on converged connectivity and services, with further investments in both its fixed and mobile networks via programmes such as full fibre and 5G.

This deal represents another example of Aurelius’ specialism in complex divestment processes. Commenting on the financing deal with Leumi ABL, Tristan Nagler, Managing Director of Aurelius in the UK, said: “We are delighted to be partnering with Leumi ABL once again. The team were highly professional throughout the transaction delivering a compelling financing structure that will meet the working capital needs of Rivus Fleet Solutions going forward. We are so excited about the growth prospects for Rivus Fleet Solutions and feel confident that Aurelius and Leumi ABL will work in tandem to maximise the many opportunities open to the business in the coming years.”

Rob Wakeford, Leumi ABL Regional Sales Director, added: “We are delighted to be supporting Aurelius and Rivus Fleet Solutions with a flexible invoice finance facility and look forward to working with the management team as they seek to maintain their market leading position and drive growth for the business.”

Leumi were advised by Crowell and Mooring (legal) and SIA Group (collateral due diligence).

Burden Group

Burden Group

October 2019

Leumi ABL has completed a deal to support the acquisition and ongoing working capital of the Burden Group, by Caneda Foods.

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Burden Group

Burden Group

October 2019

Leumi ABL has completed a deal to support the acquisition and ongoing working capital of the Burden Group, by Caneda Foods.

Leumi ABL has provided a £14m finance facility to support the acquisition of two businesses: James Burden and Cavendish Ships Stores.

The Burden Group is a diversified UK food distribution business with locations in London, Tonbridge, Fareham and Newcastle.  It is the largest business operating in Smithfield Market, where it operates under the James Burden name and is one of the leading meat and poultry trading operations in the UK.  Cavendish Ships Stores is a major supplier of food and beverages to the cruise ship market.

The deal sees Leumi ABL providing a £14m invoice discounting facility for the acquisition by Caneda Foods and to support a buy and build strategy in the food services sector.

Commenting on this first deal in their buy and build strategy, Paul Barbour, Caneda Foods Director, said: “Leumi ABL took the time to listen to our requirements and helped to make the process as straightforward as possible, offering a truly flexible funding package to support the acquisition and meet our working capital requirements.  We were kept well informed at all stages of the deal process and this gave us reassurance.  We look forward to ongoing support from Leumi ABL as we continue our growth plans while retaining the same focus on delivering high quality products to our customers.”

Rob Wakeford, Leumi ABL Regional Sales Director, added: “We are delighted to be working with Caneda Foods to support their acquisition of such a highly regarded and long established company.”

Real Good Food Plc

Real Good Food Plc

September 2019

Leumi ABL completes £8.87m refinance deal with Real Good Food Plc

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Real Good Food Plc

Real Good Food Plc

September 2019

Leumi ABL has supported Real Good Food Plc with a structured ABL package totalling £8.87m.

Real Good Food is a diversified food business serving a number of market sectors including retail, manufacturing, foodservice and export.  The Company focuses on two main markets: cake decoration (Renshaw and Rainbow Dust Colours) and food ingredients (Brighter Foods).

The flexible funding from Leumi ABL comprises invoice finance, plant & machinery finance and a term loan facility.

Maribeth Keeling, CFO of Real Good Food, commented: “We are delighted with the support we have received from Leumi ABL in the form of the facilities, as we seek to normalise our facilities with a better balance of bank facilities and shareholder support.  Leumi’s support underpins the work the Board has undertaken in streamlining the business units of Real Good Food in order to drive the Group towards consolidated profitability.  

I would also like to thank our Major Shareholders for the financing they have provided over the past few years to ensure the financial survival of the Group as the Board has worked to turn RGF around.”

John Walsh, Leumi ABL Regional Sales Director, added: “The structure of our ABL package provides a solid funding base from which Real Good Food can expand and further prosper and we look forward to supporting the team.  Once again we were able to structure the deal and demonstrate our refreshing approach, flexibility and timely response, enabling Leumi ABL to be the preferred funding partner.”

Jablite Styropack

Jablite Styropack

April 2019

Leumi ABL has completed a £12.725m deal with Kent-based Jablite and Styropack.

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Jablite Styropack

Jablite Styropack

April 2019

Leumi ABL has completed a £12.725m deal with Kent-based Jablite and Styropack.

£40m turnover Jablite Holdings Limited is a leading UK manufacturer and supplier of Expanded Polystyrene products. Its two main trading subsidiaries, Jablite, specialists in large block mould production for insulation and civil engineering applications, and Styropack, focusing on shape moulding for products in a wide range of sectors, both required funding from Leumi ABL.

Established in 1972, Jablite has developed over the years through pioneering innovation in insulation products and now operates from five manufacturing sites across the UK. In 2015 a MBO was backed by Mobeus Equity Partners, and following the instigation of a growth plan the business turned to Leumi for increased working capital facilities.

The funding package incorporating an invoice finance facility, stock finance facility and a P&M facility from Leumi ABL will generate significant headroom above the incumbent invoice discounting facility.

Matt Groom, Finance Director at Jablite Styropack, commented: “We were really impressed with how easy Leumi ABL made the whole process. They seemed to understand our business from the beginning and dealt with any queries or questions in a prompt and efficient manner. This gave us the confidence that Leumi ABL would be the best partner for us.”

Leumi ABL Regional Sales Directors for London, Rob Wakeford and Martin Risman, completed the deal jointly. Commenting on the deal, Rob added: “Leumi ABL were considered from a wide tender of ABL providers and we are delighted to be working with Jablite and Styropack. Our relationship with the advisors and client management team has helped to ensure a smooth refinancing process and we look forward to supporting the management’s growth plan.”

Advisors on the transaction included JDC Corporate Finance, Eurolease, Addleshaw Goddard, Birketts and European Valuations.

Framptons

Framptons

August 2018

Leumi ABL has provided a £7m Asset Based Lending funding line to Framptons, the £43m turnover, Shepton Mallet based manufacturer of egg products and processor of liquid products, comprising debtor finance, plant finance and term loan.

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Framptons

Framptons

August 2018

Leumi ABL has provided a £7m Asset Based Lending funding line to Framptons, the £43m turnover, Shepton Mallet based manufacturer of egg products and processor of liquid products, comprising debtor finance, plant finance and term loan.

The funds enable Framptons, which was bought by the current team in an MBO in 2014, to invest in further new product development for bakery and food service customers and for specific capital expenditure projects – money that was unavailable from their clearing bank.

Jason Holland, Regional Sales Director in the Midlands, commented: “This is a typical ABL deal for us. Framptons is a long established business in the South West which continues to grow and the existing clearing bank were unable to provide the level of support required. It is a well-controlled business with strategic direction in a particularly lively sector.”

Allan Staples, Finance Director at Framptons, said: “We had discussions with other finance providers but Leumi ABL were very proactive in helping us through the process. They worked closely with us to understand our requirements and were keen to find a solution that would work for our business. They were also rigorous in making sure everything was in place so that the deal could be finalised as smoothly and promptly as possible.”

The re-finance was introduced by Barry Lee and Stuart Hands at Translink Corporate Finance, a leading independent M&A and corporate advisory firm with a focus on UK and cross-border deals.

This comes hot on the heels of a string of completions nationally by Leumi ABL, supporting a wide range of sectors.

Biosite Sytems

Biosite Sytems

March 2018

Leumi ABL has provided a £multi million Invoice Discounting facility to support the growth of Biosite Systems, a supplier of biometric workforce management and site security solutions into the construction sector.

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Biosite Sytems

Biosite Sytems

March 2018

Leumi ABL has provided a £multi million Invoice Discounting facility to support the growth of Biosite Systems, a supplier of biometric workforce management and site security solutions into the construction sector. Backed by Mobeus Equity Partners, Biosite provides technologically advanced fingerprint recognition devices and operationally enhancing control management systems. The Leumi facility provides flexible funding to support significant growth plans.

Based in the Midlands and established in 2011 by entrepreneurs, Dr Li Wang and Dr Greg Reynolds, the business has developed a unique algorithm for site worker control and received investment from Mobeus in 2016.

With a client base including many Construction Corporates, Biosite is at the forefront of contractor management and project efficiency in the sector. The patented low-grade fingerprint technology is complemented by a software system that allows customers to utilise the data collected from the access control platform to manage their workforce, in addition to providing broader security services including integrated CCTV, fire alarms and guarding.

Li Wang, Founder and Director of Biosite said: “We are delighted to have secured this funding from Leumi ABL to support our development plans. Leumi have taken the time to understand the nuances of our business and we look forward to building a very successful working relationship.”

Amit Hindocha, Investment Director at Mobeus Equity Partners, added: “We approached Leumi due to their ability to structure business-appropriate financing packages. Leumi has delivered a funding solution which will provide essential flexibility and support for Biosite’s growth ambitions.”

Martin Risman, Leumi ABL Regional Sales Director, commented: “Biosite is an exciting progressive business with great technology, an award-winning investor and a stand-out growth plan.  We look forward to being involved in supporting the business in the next stage of its journey”.

Stemcor

Stemcor

May 2017

Leumi ABL is pleased to announce that it has supported the MBO of two businesses, Steel Plate & Sections Limited and Stemcor Special Steels Limited from their holding company group.

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Stemcor

Stemcor

May 2017

Leumi ABL supports MBO of Steel Products business with multi-ABL facility

Leumi ABL is pleased to announce that it has supported the MBO of two businesses, Steel Plate & Sections Limited and Stemcor Special Steels Limited from their holding company group. The management team was supported with investment from Breal Capital affiliates and secondary funding from Breal Zeta Limited.

Steel Plate & Sections and Stemcor Special Steels both sell speciality steel products to customers in the oil and gas sectors.

Leumi ABL provided finance to support the acquisition with an aggregate facility of £14.5m, comprising a £9m CID facility, £4.5m inventory facility and a £1m term loan.

Commenting on the deal, Brent Osborne of behalf of Breal Group said: “Leumi ABL’s proposal was attractive as it provided funding against all the business assets. Leumi worked with us to make sure completion was achieved in the required and challenging timeline, whilst really understanding the business.”

Robert Wakeford, Regional Sales Director at Leumi ABL said: “This is the second corporate carve out we have funded in April, and on both occasions it has been the certainty of delivery against a deadline that has been critical to the success of the deal.”

Hilco Valuation Services undertook the Accounts Receivable field exam and inventory appraisal work. Gunnercooke advised the companies. Squire Patton Boggs advised Leumi.

Whitworths Ltd

Whitworths Ltd

August 2017

Leumi ABL has recently completed the £19m refinance of leading brand Whitworths Ltd on full Asset Based Lending facilities including CID, Stock and Term Loan.

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Whitworths Ltd

Whitworths Ltd

August 2017

Leumi cracks dried fruit and nuts refinance

Leumi ABL has recently completed the £19m refinance of leading brand Whitworths Ltd on full Asset Based Lending facilities including CID, Stock and Term Loan.

The facility provides funding for investment in new plant, marketing, innovation and overseas expansion, in support of Whitworths’ long term plans for growth.

Mark Fairweather – CEO of Whitworths said: “The merger between Anatolia and Whitworths in May 2017 created the opportunity to invest in the growth of the Whitworths brands both in the UK and internationally, as well as investing in the appropriate packing facilities to meet the long term needs of our key retail customers and their brands.

“This funding provides Whitworths with the ability to build on its unique position in the market delivering supply chain integrity from producer to consumer on key areas of dried fruit. This is an exciting opportunity for Whitworths and one that will bring long term benefits to our consumers, customers and suppliers.”

Jason Holland, Regional Sales Director (Midlands) of Leumi ABL said: “We are delighted to support the leading name in dried fruit, nuts and seeds, in both own brand and private label markets. Management have a strong vision and are making great steps fulfilling customers’ requirements in both product range and service delivery. This can only enhance Whitworths’ reputation as the leading brand. Our comprehensive asset based lending facilities provide Whitworths with capital for growth and investment.”

Go Interiors

Go Interiors

May 2017

Leumi ABL is pleased to have provided funding to support the acquisition of Birmingham based FGF, by Go Interiors, the largest independent specialist distributor in the construction interior sector.

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Go Interiors

Go Interiors

May 2017

Leumi ABL supports growth of a £65m turnover building products Group

Leumi ABL is pleased to have provided funding to support the acquisition of Birmingham based FGF, by Go Interiors, the largest independent specialist distributor in the construction interior sector.

Founded in 2001, £35m turnover Go Interiors, headquartered in Hemel Hempstead, distributes dry lining, suspended ceiling, partitions and insulation systems. The business has featured in the Times Fast Track 100 and UK Hot 100, having built a strong reputation in the industry for its expertise and the benchmark-setting standard of customer service.

FGF, a family-run £25m+ turnover business founded in 1954, specialises in decorative cladding and facades, cutting, re-manufacturing and industrial insulation solutions. Over the last seven years, the business has restructured, supported by Leumi ABL, and has progressed well to a profitable position.

The acquisition offers the opportunity for both organisations to reach new markets and customers will benefit from a unique offering of products and services.

Commenting on the financing deal with Leumi ABL, Gerard Abbott-Drake, Director at Go Interiors, said: “Having spoken with a number of banks, the decision to go with Leumi ABL was an easy one. Their approach was simple and straightforward and the people making decisions had an entrepreneurial flair that was really refreshing. The team were extremely helpful and made the completion of the deal as uncomplicated as possible. I wouldn’t hesitate to recommend them.”

Hider Food Imports

Hider Food Imports

January 2017

Leumi ABL completes £5.75m financing deal with Hider Food Imports Leumi ABL has supported one of the UK’s leading distributors of nuts and dried fruits, Hider Food Imports, with a multi-facility Asset Based Lending package.

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Hider Food Imports

Hider Food Imports

January 2017

Hider Food Imports is the leading distributor of fine foods to the independent retail sector and has recently won two industry awards, including being voted number one by retailers in their sector-leading magazine for the fifth year.The family-owned business has operated from its HQ in Hull since 1965 and continuing growth plans prompted the business to seek a new flexible Asset Based Lender who could support their working capital requirements in the short, medium and long-term. Leumi ABL provided a facility comprising of £5.75m invoice discounting, plant and machinery finance and a stock finance facility.Duncan Hider, Managing Director at Hider Food Imports, commented: “After looking at various traditional funding partners and new lenders on the market, we were enthused by a more old style banking approach to lending. We use the term ‘old style’ in a positive way: not decision makers hiding behind relationship directors, but human beings with whom we could meet and who followed through on their verbal commitments.

“Receiving good recommendations from our trusted network about Leumi’s ability to deliver the finance required was very important to us. Throughout the process my fellow director and I received regular progress updates, whether it be positive or negative. Communication from Leumi ABL was strong, with face-to-face conversations backed up by phone and email. When we encountered challenges, solutions were explored quickly, and the information requested from us was standard information that was easily put together.

“Everyone we dealt with at Leumi ABL seemed to be aware of our requirements and helped to make the process as straightforward as possible. Yes, there were hiccups, and yes, things took longer than planned, but each barrier and delay was communicated well, and solutions worked on from both sides. There seemed to be a real team spirit within Leumi ABL and this gave us reassurance. We got the sense that decisions were made more quickly without long chains of management and approvals, taking into consideration discussions as well as numbers to really understand the business.

“In terms of fees, we had sensible discussions; Leumi ABL didn’t simply tell us what the cost was, they talked us through the proposals and listened and responded to our concerns. Their approach to us always came across positively, and very quickly we felt at ease to discuss issues openly. They viewed our business, our assets and then worked on a facility that fitted our requirements, without onerous covenants with a straightforward open approach, letting us concentrate on running the business.”

John Walsh, Leumi ABL Regional Sales Director in the North East & Yorkshire, comments: “We had a clear mandate on what was required and with the help of Hider’s professional team, we were able to structure the facility and demonstrate our refreshing approach, flexibility and timely response yet again enabling us to be the favoured funding partner.”

Red Commerce

Red Commerce

September 2016

Leumi ABL completes £25m cross border ABL facility to support growing international recruitment business. Leumi ABL has completed a £25m facility for Red Commerce, a private equity owned international recruitment business.

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Red Commerce

Red Commerce

September 2016

With its global headquarters in London, Red Commerce operates from eight offices in the UK, Germany, Switzerland, US and Brazil, supplying SAP consultants globally to meet the requirements of businesses seeking full-time staff or contingent staff.

Staff operating the specialist IT software system, SAP, are highly skilled and command high rates of pay, with an average of £500 per day being paid to them. This creates a large working capital requirement.

When Red Commerce’s high street bank failed to have the appetite to support its growth plans outside of the UK, Leumi ABL was able to step in and set up facilities in the UK, US, Germany and Switzerland. The package comprises of invoice discounting and an additional unbilled finance facility.

Red Commerce is majority owned by Dunedin, a mid-market private equity firm, which is currently investing in businesses from its £300m fund. Dunedin purchased Red in 2010 with Red commanding an enterprise value of £44m. Dunedin and the management team have a high growth strategy for the next three years: £90m turnover is forecast to grow to £189m in 2019.

Red Commerce is one of an increasing number of Leumi ABL deals supporting Private Equity. Leumi ABL has a specialist understanding of the PE market having completed many successful PE deals in recent years.

Rob Wakeford, Leumi ABL Regional Sales Director in London, comments: “We had a clear mandate on what was required. With the help of Red’s highly professional team we were able to structure the facility as it was initially envisioned and look forward to supporting Red Commerce’s international growth plans.”

Pasta Foods Ltd

Pasta Foods Ltd

March 2016

Leumi ABL completes £8.5m Hoops and Shapes deal. Leumi ABL has supported Pasta Foods Ltd, a £28m turnover pasta and snacks manufacturing business, with a full asset based lending facility of £8.5m, comprising of Debtors, Stock, P & M and Term Loan facilities.

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Pasta Foods Ltd

Pasta Foods Ltd

March 2016

Pasta Foods recently invested heavily in a brand new, industry leading manufacturing facility in Norwich to serve its global customer base in every continent. Leumi ABL provided facilities to replace the existing clearing bank with headroom for growth. Customers include many of the leading pasta processing companies, including one very well-known brand name which uses character pasta shapes supplied by Pasta Foods.

Leumi ABL were delighted to partner with the existing investor shareholders and to back their future plans. Jason Holland, Regional Sales Director at Leumi ABL in the Midlands said: “This was a competitive tendering process where our refreshing approach, flexibility and timely response yet again enabled us to be the favoured partner. My thanks go to Peter Seary at Roythorne’s who initially put me in contact with the Company.”

Simon Webber, Director and shareholder at Pasta Foods, added: “We wanted to work with Leumi ABL due to the manner in which they are set up to support growth, particularly in a sector such as ours. They showed real understanding of the challenges in the food sector and the importance of having available cash. The ABL package, in particular the CID facility, will help greatly with our working capital requirements. Leumi ABL delivered the deal quickly and Jason was always available to offer support throughout the process.”

Additionally, Leumi were delighted to work with a wide range of Midlands’ advisers; Freeths for Leumi ABL, Prettys (Company) and Gateley (Bank). SIA undertook the asset valuations on behalf of Leumi ABL.