Booths completes £93m funding deal
FAMILY-owned supermarket group EH Booth & Co has agreed a £93m funding deal to help drive its expansion.
The company, which is run by Lancashire Enterprise Partnership chairman Edwin Booth, will use £53m of the facility to refinance existing debt and a further £37m to support its growth strategy.
The Preston company is planning a new store opening strategy, starting with its MediaCity:UK outlet, which is set to begin trading next month.
Executive chairman Edwin Booth said: “To secure the funding needed to build on my family’s legacy of hard work and ambition is very pleasing indeed.
“Booths has exciting times ahead as we look forward to welcoming many new customers through our doors. Achieving growth capital was critical in enabling us to pursue our strategy and we can now move forward at pace and with confidence.”
The firm was advised on the funding deal by KPMG. Nick Dodd, director of KPMG’s debt advisory team, said: “This deal is a great example of how a quality business can buck the trend of negative news from the retail sector and highlights the fact that there is liquidity in the banking market available to companies with a good credit story.”
The refinancing was provided by the firm’s existing bank, Royal Bank of Scotland (RBS), alongside Lloyds Banking Group. Booths has been an RBS client for more than 100 years.
RBS relationship director, Chris Logan, said: “The Booths team have a clear and coherent strategy for the future of the business and are confidently pursuing it. We are looking forward to playing a key partner role in order to help them to achieve this.”
Paul Foster, deputy area director for Lloyds Bank Corporate Markets, said: “We are delighted to be able to provide support to Booths, a jewel in the crown for the North West and an iconic company with a tremendous history.
“The company has traded exceptionally well in a difficult climate and it shows that good management combined with a dedicated staff and loyal customer base can still achieve excellent results.”
Legal advice for the refinancing was provided by DLA Piper/Napthens (to Booths) and by Addleshaw Goddard (RBS/Lloyds).
