Kroll Supports Butcher’s Pet Care to Secure New Funding Package

UK pet food brand, Butcher’s Pet Care (“the Company”) secured a £40m+ funding package in a deal led by Kroll.
 
Client Challenge

Butcher’s Pet Care, a £100m turnover leading pet food manufacturer, was seeking to refinance its existing asset-based lending (ABL) facilities and to secure a debt structure more aligned to the cash needs and strategic direction of the business.
 
The industry was facing cost pressures across the supply chain and the Company needed to secure funding to commit to Capex at its manufacturing facility. In addition, investment in its core brands was required to protect its market leading position in the dog category and expand its new cat food product offering.
 
Kroll was engaged by the Company after completing an independent business review on behalf of the Company’s previous lenders.
 
Key Activities

Kroll was retained as exclusive debt advisor to the Company to lead the refinancing and debt raise process.
 
Kroll prepared a comprehensive Information Memorandum (IM) that was issued to prospective lenders to introduce the Company and the deal opportunity. Kroll’s in-depth understanding of the lender community led to a very high response rate across ABLs and debt funds which helped to generate strong competitive tension.
 
Lenders submitted indicative terms based on the IM and a lender shortlist was selected, each of whom attended site visits and management presentations. The shortlisted lenders were given access to a full virtual data room.
 
Kroll was responsible for managing the lender Q&A process which minimized distraction to management and enabled them to focus on running the business at a pivotal time in the wake of supply chain pressures and cost inflation.
 
In addition, Kroll maintained financial models based on the separate lender terms which were updated in line with the proposed debt structures.
 
Kroll advised management on the relative merits and drawbacks of the terms issued and provided a detailed lender comparison analysis to assist management’s understanding of their options and clearly asses the liquidity each option would generate.

Outcome

In February 2022, the Company secured more than £40m of new non-amortising facilities with an independent ABL and Debt Fund to provide headroom to implement their turnaround plan which is predicated on growth and further investment in the asset base.

Kroll’s strong relationships with the Company’s previous lenders ensured a smooth process and provided sufficient time for completion of the refinance.

About Butcher’s Pet Care 

Butcher’s Pet Care, based in Northamptonshire, was established in 1983 by Graham Baker and has grown to become one of the UK’s best loved and most recognizable brands in the industry.