HSBC arrange £73 million asset-based lending facility
Muntons, one of the world’s leading global manufacturer and producer of malted products, is set to expand following a £73m committed five-year Asset Based Lending (ABL) facility from HSBC UK.
Commenting on the expansion plans, Andy Simpson, Group Finance Director at Muntons, said: “This is an exciting time for Muntons and we’re delighted that HSBC UK has supported us with our significant expansion plans. We purchase more than 250,000 tonnes of barley every year from within the UK, and our new plans to increase our manufacturing capabilities mark the start of a fantastic new chapter for us.”
The family-owned business, which has its headquarters in Stowmarket, will use the funding to invest in capital projects, the first of which is being made in response to the increasing demand among consumers for malted ingredients, used in a wide range of products as diverse as breakfast cereals, confectionery and malted beverages. Malt brings benefits such as sweetness, flavour enhancement and colour addition and the rise in popularity for malt-based products will see Muntons increase its liquid malt extract plant production capacity significantly at its Stowmarket headquarters, which will benefit the business globally.
HSBC UK Business Development Director for ABL, Ivor McTighe, added: “Long-established Muntons is a fantastic business investing for the future and supporting the UK economy. It exports worldwide and our committed ABL facility will enable them to explore additional opportunities for growth outside of Europe.”
HSBC UK Area Director, Jason Smithers, expanded: “The £73m facility, organised by HSBC UK Relationship Director Jamie Bignal, offers Muntons improved liquidity, financial stability and a more predictable cash flow compared to other funding packages, enabling the business to set its sights on a larger-scale expansion. We can’t wait to see what the next five years and beyond will bring for this dynamic and fast-growing company.”