Yorkshire Bank backs £100m refinancing of Cranswick plc

Cranswick plc, one of the UK’s leading food producers, has secured a £100m finance package supported by Yorkshire Bank Corporate & Structured Finance.

Yorkshire Bank Corporate & Structured Finance is providing £30m as part of a banking club.

Cranswick, based in Hull, supplies a range of food products, including fresh pork, cooked meats, gourmet sausages, dry cured bacon, charcuterie and sandwiches, to the UK grocery retailers, the food service sector and other food producers. 

The funding will replace Cranswick’s existing £120m facilities agreed in 2008, which included funding for Cranswick’s acquisition of fresh pork producer, Bowes of Norfolk Limited. The current refinance sees Cranswick reduce its debt requirement, while at the same time, Yorkshire Bank Corporate & Structured Finance has increased its investment in the company.

Sean Hale, corporate director with Yorkshire Bank Corporate & Structured Finance in Leeds, said: “Cranswick has an impressive track record in the food industry. Due to the cash generative nature of the business, it has been able to reduce its facilities in the current refinance while still allowing substantial resources to support future acquisitions. It is testimony to the strong relationship we have developed with the company that we have been able to step up our position within the banking group in this latest deal.”

Mark Bottomley, finance director of Cranswick plc, said: “This new facility supports our growth strategy and ensures we are well positioned to continue our successful development in the coming years. All the banks have shown a genuine commitment to understanding our business. Their specialist teams have managed the complexities of this deal very well and as a result we now have the platform for continued growth that we need."