Cowgill Holloway advise Cleanbake Limited in £2.4m Santander refinance deal

February 12 2014
Skelmersdale-headquartered Cleanbake has completed a £2.4 million refinancing deal with Santander Corporate & Commercial, which includes £180k of new finance to support working capital growth.
For over twenty years, Cleanbake has delivered complete end-to-end cleaning, refurbishment, manufacturing, logistics and low carbon solutions for the bakery industry’s most recognised brands. Customers range from international plant bakeries and major supermarket chains to small, artisan craft bakeries.
Cleanbake, which employs over 40 people  in the North West, processes over one million bakery items per annum, and operates a pan European distribution service.
Ian Johnson, Head of Corporate Finance at Cowgill Holloway, whose team ran the transaction, said: “We’ve worked very closely with the directors of Cleanbake over the last 3 years to help clarify their business plan and to identify the structure and level of working and development capital needed to deliver it.
“We approached a number of possible funding partners prior to agreeing a fit for purpose funding structure. We managed the refinancing and fund raising through to completion and we are delighted with the result.
“In today’s challenging market conditions, it’s encouraging to see this type of strategic transaction completing to stimulate growth.”
Shaun Hughes, Managing Director of Cleanbake explained the reasoning behind the refinance: “We are in a growing market and had a number of new product lines ready for development. We were looking for a new arrangement that would give us more freedom to invest in the business. The refinance with Santander provides us with a sound footing on which to build growth. We are experiencing strong demand for our products and services, and we need to be in a robust financial position to be able to take advantage of that. We are now looking forward to continuing to develop the business across Europe.”
The deal was arranged by Gordon Clements, Relationship Director at Santander Corporate & Commercial. He added: “Cleanbake is a long established and successful business operating in the top end of its sector. We worked closely with Shaun and the team to understand the needs of the business and develop a comprehensive refinancing proposal that would support its continued expansion. We are delighted to support this great business in its investment and growth plans.”