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Endless to refinance office supplier Vasanta Group

Endless, a UK turnaround fund, has partnered with a syndicate of banks to refinance Vasanta Group, the GBP500m turnover office supplies company that employs 1,500 people around the UK.<

Endless, a UK turnaround fund, has partnered with a syndicate of banks to refinance Vasanta Group, the GBP500m turnover office supplies company that employs 1,500 people around the UK.

The group, which is headquartered in Sheffield, has received GBP30m of new investment and its debt burden has significantly reduced.

The group, advised by Deloitte Corporate Finance, acted to secure additional funding after it encountered difficulties arising from a significant withdrawal of credit insurance in the first half of 2009, its high level of debt and a challenging market environment.

Endless has injected the majority of the new facilities having made the investment less than three weeks after the firm was first approached by Deloitte, which has been advising Vasanta and also Endless on this accelerated refinancing and financial restructuring.

Garry Wilson, managing partner of Endless, says: ‘Vasanta is a prime example of the combined effects of the credit crunch and recession in action in the UK in 2009. It is a well run, profitable business which was coping with the economic downturn but then credit insurers withdrew cover which immediately caused a cash outflow from the Group of over GBP30m. Endless exists to provide fundamentally good companies requiring financial or operational restructuring with new funds and hands-on support, and we do this quickly.’

Richard Martin, chief executive of Vasanta, says: ‘I would once again like to thank our customers, employees, suppliers and others in our industry, who have continued to provide overwhelming support and loyalty to us, particularly over the last few days. It is now our job to do our utmost to live up to this, and I am confident that we are now well-placed to do so.’

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