DBC Foodservice, one of the leading players in the UK foodservice market, has secured a new three year funding facility worth over £35 million in a joint package from Lloyds TSB Corporate Markets and Lloyds TSB Commercial Finance.
Headquartered in Hertfordshire and operating in 12 locations across the UK, DBC Foodservice offers a comprehensive range, covering ambient grocery, chilled, frozen, fresh produce, fresh & cooked meats, non-food, fair trade and organic products.
Formed in 1902, the company has 213 vehicles and over 1,000 employees nationwide. It supplies to major brands including Caffe Nero, Little Chef, Gourmet Burger Kitchen, Loch Fyne, Prezzo Restaurants, Youngs Brewery and Inventive Leisure.
Andrew Ramsden, Chief Executive, DBC Foodservice, said: “When the time came to refinance our existing funding package, it was an easy decision as to which bank we should pick. As we already had a committed, locally-based bank, in Lloyds TSB Corporate Markets, that understood our business, the sector and our long-term goals – why change? The bank’s team really impressed us with their speed and the tailored solution they provided that met all the needs of our business.”
The facility will include a £20 million working capital line, a £7 million term loan and a further £8 million to cover ancillary lines. Lloyds TSB will also continue to provide all of the business’s money transmission services.
The funding package was put together by Lloyds TSB’s team, headed up by Relationship Manager, James Barron and Business Development Manager, Simon Woodcock.
Simon Woodcock, Business Development Manager at Lloyds TSB Commercial Finance commented: "Management at DBC Foodservice were keen to refinance with a flexible asset based lending facility to allow them to continue borrowing against the business' existing assets and advance the capital to execute its growth strategy.
“We worked closely with management and our colleagues from Corporate Markets to arrange an integrated funding solution that best suits the company's needs."
James Barron from Lloyds TSB Corporate Markets added: “DBC Foodservice is a real success story with a national reach and a market leading position, which is testament to the business’s high class management team.
“We’re delighted to have been retained as DBC’s banking partner and we look forward to supporting Andrew and his team as they continue to grow and develop the company. I think this deal says three important things about our banking capabilities: we offer a highly responsive and effective finance offering; we deliver locally; we are with our clients for the long term.”
Ramsden concluded: “We operate in a very competitive environment and are currently the third largest player in the sector, with enormous potential for us to challenge the market leaders. Being able to turn to a trusted partner offering flexible solutions, like Lloyds TSB, will certainly make all the difference and help us achieve our future goals.”
September 2009