Crédit Agricole Commercial Finance and Vision Capital:

A Recipe For Success

In 2007, Vision Capital LLP, an international private equity firm, purchased a portfolio of investments from Northern Foods, plc. These included the UK's leading supplier of savoury pastry products; a leading private label supplier of a wide range of fresh and frozen bread and speciality bakery products; the leading UK private label producer of premium cakes and desserts and a flour mill. 
 
After an initial bridging loan, a sale and leaseback on selected properties and the sale of the flour mill, the remaining three investments were funded via asset based lending from a major high street bank. The loans were all cross-collateralised and cross-guaranteed. However, under Vision Capital's ownership, strategies for reorganising operations and enhancing profitability were implemented; these turned the businesses around, allowing them to invest and expand achieving sector leading positions for quality, consistency of customer service and product innovation. As their loan agreement approached maturity, Vision Capital sought to finance the businesses separately, thus allowing greater flexibility in the future and facilitating individual exits for each of the businesses.

Vision Capital retained the services of Litmus Advisory Ltd, a leading asset based lending consultancy, to arrange the refinance. Litmus approached the market and after they had completed their due diligence, a number of banks were invited to tender.

The process Litmus devised was rigorous and competitive, as each company required its own tailored facility to address individual business needs but Crédit Agricole Commercial Finance proved itself to be more than capable of meeting the demands and was selected to provide the funding for the companies.

Within a tight time-frame, Crédit Agricole structured and delivered three separate asset based lending deals: £17,000,000 for the pastry products supplier, £17,900,000 for the bakery company and £16,540,000 for the specialist cakes and desserts manufacturer.

Dave Edwards, Managing Director of Litmus, comments: "Crédit Agricole Commercial Finance was prepared to be flexible, listened to what the clients wanted in each case and delivered on what they said they would. We were delighted with the high service levels and they did an excellent job."

Alister Wormsley, Managing Partner of Vision Capital, explains: "The comprehensive nature of Crédit Agricole Commercial Finance's offer was very important, as obviously it's much easier for us to have one financier for all three companies. In addition, they were approachable and took the time to understand our businesses and their specific requirements. The combination of all these factors was very impressive.

"We are pleased with our decision. The team at Crédit Agricole Commercial Finance have proved themselves to be responsive, commercial and customer-focussed bankers."    Jeff Longhurst, Managing Director of Crédit Agricole Commercial Finance, concludes: "We are delighted to have the opportunity to support the group in the achievement of its strategic objectives and also to be able to demonstrate our capability and flexibility on this type of transaction."