Growing food producer secures major financing deal

CRANSWICK, the East Yorkshire-based food producer, has secured a new £120m finance package to support its growth strategy.

The package is from a banking syndicate comprising of Lloyds Bank Commercial Banking, RBS and Yorkshire Bank and means Cranswick has increased the size of its banking facility by £20m, and can also draw on an uncommitted £30m accordion facility if required.

The uplift in funding will support the Hull-headquartered company’s ongoing capital expenditure programme. Cranswick has invested more than £120m in the past five year to improve operating processes and efficiencies across its manufacturing sites.   

Mark Bottomley, finance director for Cranswick, said: “This new banking agreement further strengthens our financial position and provides a solid platform for future growth. We have made a significant capital expenditure investment during the last five years as part of our focus on producing quality food products in modern, efficient and well invested sites. This enlarged facility ensures we have the headroom to continue with this approach.”      
 

Established in the early 1970’s, Cranswick specialises in the supply or fresh and processed food to the UK’s retail, food manufacturing and food service industries. The company offers a range of products including fresh pork, gourmet sausages, cooked meats, traditional dry cured bacon, gourmet pastry products, charcuterie and sandwiches.
 
For the financial year ending March 31 2013, Cranswick posted revenues of £875.2m and recorded adjusted pre-tax profits of £49.3m.  The company employs more than 4,000 staff across 12 sites in the UK. 
    
Richard Townsend, relationship director for Lloyds Bank Commercial Banking, said: “Cranswick has continued to grow thanks to its strong management team and well invested, highly efficient operations. The company is a significant employer and has a vital role to play in the expansion of the regional economy.  It is typical of the types of companies we are committed to supporting in East Yorkshire.”
 
Sean Hale, corporate banking relationship director for Yorkshire Bank, added: “Cranswick is well-positioned to take advantage of opportunities in a growing market. As we begin to see signs of economic recovery, Yorkshire Bank remains focused on investing in the growth ambitions of the local business community.”

Ronald Bowron, senior relationship director for RBS Large Corporates Yorkshire, said:  “We are delighted to continue to support Cranswick, we are especially excited to be able to support a successful Yorkshire-based food manufacturer with an attractive and expanding product portfolio and an ambitious high quality management team.”