Acquisitive cake manufacturer puts growth on the table with £40m boost
A cake manufacturer with several sites across Yorkshire is targeting further growth after securing a £40m financing facility.
BBF, which manufactures own label, licensed and branded ambient cakes and desserts and supplies major supermarkets across the UK, has manufacturing facilities in Hull, Bradford, Blackburn and Poland.
Last year, the company completed the acquisition of of Greencore’s cake and chilled desserts division headquartered from a bakery in Hull.
As a result of this deal, annual group revenues have risen to over £150m, with over 2,000 people employed over five sites.
Jonathan Lill, CEO of BBF, said: “The facility provided by Wells Fargo gives the business extra firepower to make further investment in all of our manufacturing sites and to deliver on our strategic growth plans. Wells demonstrated great appetite throughout the process to support the business and we’re excited to have secured this new funding facility.”
BBF, led by CEO Jonathan Lill, has been owned by private equity investor Endless LLP since 2015.
The financing will be provided by Wells Fargo Capital Finance. The three-year financing facility provides day-to-day working capital for BBF, as well as headroom to enable further capital investment into manufacturing facilities.
Tom Weedall, director of Loan Originations, WFCF UK, added: “Leveraging Wells Fargo’s platform, we are delighted to work with BBF. This funding facility will support their future working capital and growth requirements. Also, our tailored solution will enable BBF to continue to provide the highest level of service and award-winning products to their customers.”
FRP Advisory in Manchester provided Debt Advisory advice to Endless and BBF.
Andy Pickford, director debt advisory at FRP Advisory in Manchester, said: “BBF is a high quality, market leading business, owned by a private equity sponsor that is at the forefront of investment into UK mid-market corporates.
“Pleasingly, there was significant interest from the finance community for this transaction, and the terms offered and underwritten by the team at Wells Fargo will now allow the management team at BBF to execute their exciting three-year plan.”