Investec Growth & Acquisition Finance has provided a GBP55 million debt facility to support an affiliate of Sun European Partners (Sun) in its acquisition of Finlays Horticulture Investments Limited and Finlays Horticulture Holdings Limited (Finlays) from the Swire Group.
Blending asset-based and cashflow lending, the funding structure provided by Investec features revolvers and term debt to support the acquisition. It also caters for ongoing working capital and investment to drive future growth.
UK-headquartered Finlays, a distributor of fresh flowers, bouquets and packaged vegetables, generates annual revenues in excess of GBP300 million, selling to multiple retailers in the UK as well as multiples and distributors in Europe. The company benefits from the ownership of farming assets in Kenya, South Africa and Tanzania, as well as sourcing produce from a global network of third-party growers. With significant packing and distribution capabilities, Finlays is the largest added-value supplier of African fresh produce and flowers to the EU.
James Cullen, Investec Growth & Acquisition Finance, says: “We’re delighted to partner with Sun on the Finlays transaction – a really compelling business with a strong market reputation for the quality and year-round reliability of its supply of product. We’re also backing a great management team led by Martin Hudson (CEO) and Richard Capaldi (CFO). We worked closely with them and Sun to ensure that our structure brings substantial headroom to allow the business to trade through the seasonal cycles and to implement their plan for growth.”
David Culpan, Head of Debt Capital Markets at Sun, says: “We chose Investec as our funding partner because of our experience of them delivering certainty on previous transactions with us and their ability to be creative in their funding structures. Finlays is a unique business and Investec quickly understood their needs and provided a suitable financing structure for the business.”
