E.H. Booth & Co, the North West based family grocery retailer has successfully refinanced its existing £56m debt facility and extended its credit by a further £37m to support its ambitious growth strategy.
The long established, family business plans to build on the strong performance of its 26 stores in the North of England by investing in a new store opening programme, starting with Media City in Manchester, due to begin trading in October 2011.
Edwin Booth, Executive Chairman of Booths, said:
“To secure the funding needed to build on my family legacy of hard work and ambition is very pleasing indeed. Booths has exciting times ahead as we look forward to welcoming many new customers through our doors. Achieving growth capital was critical in enabling us to pursue our strategy and we can now move forward at pace and with confidence.”
Nick Dodd, Director leading KPMG’s debt advisory business in the North, advised Booths on its successful refinancing. He commented:
“This deal is a great example of how a quality business can buck the trend of negative news from the retail sector and highlights the fact that there is liquidity in the banking market available to companies with a good credit story.
“It’s always pleasing to play a role in a business’s growth strategy, especially such a renowned family company. Indeed, we are advising a number of privately owned businesses on their approach to accessing finance and a key message is to begin preparation early and prepare like never before.”
The refinancing was provided by Royal Bank of Scotland, which has been Booths’ lender for over 100 years, and Lloyds Banking Group.
Chris Logan, Relationship Director, Royal Bank of Scotland, said:
“We are very pleased to be able to continue to support E.H. Booth & Co in this exciting next stage for the business. The Booths team have a clear and coherent strategy for the future of the business and are confidently pursuing it. We are looking forward to playing a key partner role in order to help them to achieve this, and to further developing our relationship with them in the future.”
Paul Foster, Deputy Area Director, Lloyds Bank Corporate Markets in Manchester, said:
“We are delighted to be able to provide support to Booths, a jewel in the Crown for the North West and an iconic company with a tremendous history. The company has traded exceptionally well in a difficult climate and it shows that good management combined with a dedicated staff and loyal customer base can still achieve excellent results. Importantly, Booths are keen supporters of local producers so this finance will have a much wider benefit to the North West rural economy.”
Matt Christmas and Hans Scheiweller of DLA Piper and Andrew Ferguson of Napthens advised Booths and Martin O’Shea and Richard Omen of Addleshaw Goddard advised Royal Bank of Scotland and Lloyds Banking Group.