05 Jan 2010
Jeyes Holdings Ltd, the Thetford based manufacturer of hygiene products has completed a major refinancing agreement, securing a revolving asset-based lending facility in excess of £20m. The facility has been agreed with the Corporate Banking and Invoice Finance divisions of RBS.
The lending repays existing syndicated term debt and will provide additional funding for working capital and for future growth plans.
Nicholas Goodwin, Finance Director, Jeyes Group Ltd said: “Whilst continuing to invest in the business, we have considerably reduced our term debt over the last 24 months to less than 1 times ebitda and we felt it was an appropriate time to seek fresh finance. We have a very strong asset base which proved to be attractive to several banks. We are, however, delighted to be working with RBS as we drive Jeyes forward.”
He continued: “We have a clear direction that is underpinned by three key factors: developing innovative products that appeal to identified markets around the world; cost-down programmes driven through the supply chain; seeking and securing acquisitions. This has enabled the business to achieve turnover growth in excess of 20% over the past year and to continue to invest in the growth of our core brands. This agreement with RBS underpins our vision very well and leaves us well-placed to seek acquisitions in the future.”
The facility was arranged through a deal team from the Norwich office of RBS, headed by Jim Braithwaite, Relationship Director, Corporate Banking, who said: “We are delighted to agree this significant refinancing arrangement with Jeyes. Jeyes is a household name worldwide with a reputation for innovation and a very capable management team. We have been in dialogue with Nicholas and his colleagues for a long time and so have a clear understanding of their direction and vision. Our role was to provide a funding solution that was fit for purpose and helps them realise that vision.”
Simon Turner, Business Development Director with RBS Invoice Finance added: “The deal is also a strong example of the flexible funding solutions that are becoming more prevalent in today’s economic environment. By structuring the funding on the value of the assets held within the business it makes the facility tailored to the requirements of the business through its production and sales cycles.”
Notes to Editors:
Jeyes manufactures, markets, sells and distributes household cleaning and hygiene products in over 60 countries around the world, generating sales of more than £220m in 2009.
Jeyes sponsors The Bill on ITV.
In July 2009 Jeyes relaunched their successful Bloo range of liquid toilet cleaners, with a unique twist. The range now features a new concept in the market - limited edition fragrances that are changed every season. Since then, sales have leapt by 40% year on year.
In June 2008, Jeyes added the Easy range to its portfolio of household cleaning products when it acquired Powder & Liquid Products (PLP) of Consett, County Durham, for an undisclosed sum.
In 2002, LGV Capital (“LGV”) formed a joint venture with IWP International plc (IWP) to effect a management buyout of Jeyes Group Limited ("Jeyes"). LGV Capital is a leading private equity firm focused on UK businesses valued in excess of £25m in the consumer, leisure, services and healthcare sectors.
For further media information please contact Patrick Peal at Tribe.
Tel: 01603-417722
Email: Patrick@tribepr.com
