Genius Foods receives £7.5m Asset Based Loan by Shawbrook
Genius Foods, who specialise in manufacturing gluten-free baked goods across the UK, Europe and Australia, have been provided with an Asset Based Loan (ABL) worth £7.5m by Shawbrook. The full terms of the package include a five million pounds invoice-financing line, a £1.5m property loan and a one million pound cashflow loan over a three-year term.
The two parties struck the deal as Genius Foods (Genius) was looking to refinance an existing invoice finance line and raise additional funds to improve efficiency and production lines in its bakery based in Bathgate, Scotland. The agreement was reached in the wake of Genius’ acquisition by Germany- based confectionary business, Katjes Group last year.
Shawbrook and Genius were first introduced in 2019 and stayed in contact throughout Genius’ acquisition. After the acquisition was finalised in July of 2022, Shawbrook’s team was chosen to support the refinance as a result of the strong personal relationship that had been developed throughout negotiations, their drive to get to know the inner workings of the operation and, crucially, their ability to offer a comprehensive, multi-faceted ABL package that met all the requirements Genius outlined. Shawbrook’s steadfast commitment to the deal against a backdrop of rising costs and further supply uncertainties was also a key factor.
Dr Peter Quinn, CEO of Genius Foods, said: “Shawbrook has been incredibly supportive over the past four years, working closely with our team through last year’s acquisition and the tough economic climate. The package the team at Shawbrook have put together for us is unparalleled in its flexibility and we extend our gratitude to David and the wider team for their support.”
“We are passionate about our products and this extra funding not only allows us to re-invest into our business and premises but also to re-focus on expanding our presence in the UK and Europe under the Katjes Group umbrella.”
David Cayzer, Director at Shawbrook, commented: “We are excited to be able to support Genius in its latest phase of growth under exciting new ownership. Genius Foods have a clear strategy to expand their customer base and provide high-quality products in the increasingly popular free-from food and wellness sectors all over the UK, Europe and beyond.”
“We were impressed with the senior team at Genius and were pleased to structure a unique ABL package that supports the business with its longer-term growth plans. We look forward to working with Genius in the future.”