Cakes and desserts business BBF is planning to invest in its manufacturing facilities having secured £40m funding from Wells Fargo Capital Finance (WFCF).
The new three-year financing facility will provide day-to-day working capital for the group while providing headroom to enable further capital investment in its manufacturing facilities.
It comes a year after BBF acquired Greencore’s ambient cakes and chilled desserts business. As a result of the acquisition, annual group revenues have risen to over £150m, with more than 2,000 people employed over the five sites.
BBF has sites in Blackburn, Bradford and Poland, which produce a range of own-label, licensed and branded cakes and desserts for retailers, including Tesco, Sainsbury’s, Asda, Marks & Spencer, Aldi and Lidl. It has been owned by private equity investor Endless LLP since 2015.
“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,” said Jonathan Lill, BBF CEO.
Tom Weedall, director of loan originations at 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.”