Midlands manufacturer agrees seven figure growth deal
KTC Edibles (KTC), Britain's largest private manufacturer and distributor of edible oils and fats ha…KTC Edibles (KTC), Britain's largest private manufacturer and distributor of edible oils and fats has recently agreed a new £33million funding package to support its growth strategy which includes a focus on organic expansion.
RBS Group has provided a complete funding package that includes a £33million Asset Based Lending facility, transactional banking, import letter of credit and bonds & guarantees. The ABL facility consists of working capital and term loan funding against the company's Receivables, Inventory and Property.
KTC supply over 250 million litres a year of high quality cooking oils and fats to the food industry and import, pack and distribute a wide array of ethnic and mainstream food products to manufacturers, retailers and wholesalers throughout the United Kingdom and the rest of the world.
With its headquarters in Wednesbury in the Midlands, KTC is a £200million turnover business operating from manufacturing sites in Wednesbury and Liverpool, employing 220 staff. Flagship brands, KTC and Sea Isle which are familiar to Asian and Afro-Caribbean consumers both in the UK and, through KTC's export arm in many countries overseas, make up KTC's core product range. They sit alongside a number of oil and fats brands that have consistently performed well over the last four decades.
Jindy Khera, Managing Director at KTC commented:
We are delighted with the support received from RBS. 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.
Ian Bath, Corporate Development Director at RBS Invoice Finance added:
ABL is an important funding option for growing businesses and it is becoming more appealing because it allows firms to use company assets to raise finance. In this case KTC have gained a flexible working capital facility based on their accounts receivables, inventory and property. We are delighted to fund such a high profile and well respected operator.
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.