International Food Distributor

A carve out of global baking, cooking and spreads activities from one of the world’s leading multinational, stock listed, companies. The business holds a leading market position in its field and sells products in 69 countries all over the world.

The company shows a robust business model in a mature and stable market, and revitalisation under new management. Debtors are, amongst others, large retailers, chains of supermarkets, hypermarkets, wholesalers, hospitality and catering services. Their strategy aims for happier and healthier people by making great tasting, all natural plant based products in packaging free from plastics. Their priority is to be a sustainable organisation with a positive, sustainable impact in supply chain, operations and interactions around the world.

Reason for Finance
The client required an off balance purchase working capital facility and contacted ABN AMRO. With the acquisition of a carve out of one of the world’s leading companies, the client was in fact a start-up when negotiations first started. Separate to the financing facility, the client required help to solve the start-up problems caused by transfer of data to their ERP system. This would not be a straight forward deal, but would lead to a long term partnership. Solving these problems was crucial in order for the client to take full advantage of the financing provided by ABN AMRO.

The Solution
This facility was to be provided to subsidiaries in various countries in Europe. With the client’s HQ in Amsterdam, ABN AMRO was able to provide a financing facility based on the purchase of accounts receivable. A partnership agreement was signed, providing a working capital solution for the client’s 11 biggest jurisdictions. For the client this means reduced expenses, a simplified legal situation and central cash management structures.

•   The facility includes 11 subsidiaries but operates as a one-stop-shop-facility which enables the Group Treasurer to manage a centralised working capital
•   We have set up a multi-disciplinary team to enable this facility, providing the client with efficiency and a single point of contact
•   With the research done in the preliminary phase, we have the possibility to include other subsidiaries in different jurisdictions