Polestar is pleased to announce the completion of a £20m debt refinancing for Produce World Group Limited. The funds are being used to facilitate the buy-back of minority interests in the Group and replace existing debt and working capital facilities in this £100m+ turnover fresh produce business.
Richard Hall, Partner at Polestar, confirmed: “Inevitably, in the current market with background noise from Brexit, there was some positioning required and structures to be optimised. However, it was encouraging to see overall market debt appetite holding up well, with a number of parties keen to lend, undoubtedly a reflection of the strength and reputation of Produce World in its markets.”
William Burgess, Group Chairman, commented: “The buy-out of minority interests was a transaction we had been contemplating for some time. With excellent knowledge of our position in the sector, Richard and his team were able to position us to potential funders, highlighting our strengths and ability to manage ever present risks such as weather. Produce World operates the sort of focused, cost efficient structure demanded in our sector, meaning we have limited surplus resources. Being able to rely on Polestar to do most of the heavy lifting ensured we were able to continue focusing on our customers with minimal distraction.”
Burgess family take full sole ownership of Produce World
The Burgess family has bought out the minority shareholders in Produce World and now holds all the shares in the company. For a number of years, the family has held a majority of the shares, but a significant minority were held by other shareholders who received shares as a result of mergers and acquisition by the group.