Southampton: Braeforge secures refinance deal
Braeforge, the leading UK-based dairy producer and distributor across the south, the Midlands and South Wales, with headquarters in Southampton, has agreed a £8.7 million refinance deal with Royal Bank of Scotland’s asset-based lending team to support a continued growth strategy.
Braeforge has experienced significant growth in the past five years and has nearly doubled in size through organic growth and acquisition to a £46m business.
The new deal will enable the management team to continue to expand its UK product range and sales force, and to cement the company’s position as one of the UK’s foremost milk and dairy suppliers.
Established in 1975 as a farming partnership, Braeforge is one of the few remaining independent milk processors in the country. It has diversified in recent years to supply additional dairy products such as such as eggs, bread, flavoured milk, yoghurts, cheese, juices, UHT milk and cream. It now has over 300 product lines in its foodservice offering.
The family-run dairy firm, which trades under the Pensworth and Kirby & West brands, is a market-leading milk processor and distributor supplying schools, hospitals, major convenience retailers, hotels, care homes and dairy wholesalers across the south of England. The company has a network of seven distribution centres supplying a significant customer base of both residential and commercial consumers, delivering to over a hundred thousand doorsteps every morning. Braeforge employs over 250 staff and is looking to continue to expand its operations to cover most of England and Wales.
The company has also recently entered the international arena, and now plans to export worldwide to countries including China, Vietnam, the Philippines, Malta, Singapore, Ukraine, Puerto Rico and Malaysia.
Arthur Dunne, managing director at Braeforge, said: "We are continually investing in our business to ensure we can meet the high expectations of our customers both in the UK and internationally, and therefore, it was important for us to work with a team which really understands the complex nature of our operations.
“The asset based lending facility works well because it releases working capital from our assets and grows in line with our business, giving us increased confidence to take on new contracts and expand our workforce.”
