Food oils business in £33m funding boost

A BUSINESS that manufactures and distributes edible oils and fats has secured a £33m funding package.

KTC (Edibles), which has a base in Liverpool, plans to use the money to funds its growth plans.

RBS provided a funding package that includes a £33m asset-based lending (ABL) facility, transactional banking, import letter of credit and bonds and guarantees. The ABL facility consists of working capital and term loan funding against the company’s receivables, inventory and property.
 
KTC supplies more than 250 milion litres a year of cooking oils and fats to the food industry and imports, packs and distributes a wide array of ethnic and mainstream food products to manufacturers, retailers and wholesalers throughout the UK and in many overseas markets.

It is a £200m turnover business operating from manufacturing sites in Liverpool and Wednesbury in the West Midlands, employing 220 staff.

Its flagship brands are KTC and Sea Isle.

Jindy Khera, managing director at KTC, said: “The ABL facility is an essential requirement to allow us to develop a long-term sustainable future for the business, and the funding from RBS will allow us to fulfil our growth plans.”

Nick Randle, relationship director at RBS Corporate & Institutional Banking, said:  “Food manufacturing is a key sector for RBS and we are delighted to support KTC.

“One of the important things to the management team was dealing with one bank that could provide a complete funding solution tailored to meet KTC’s requirements.”