A funding and supply chain platform for drinks businesses has secured a £400m asset-backed securitisation program alongside credit investors, including Pollen Street Capital, and investment banks.
The new facility will enable Ferovinum to expand its existing UK service offerings to businesses in the United States and European Union, as well as Australia later this year.
Ferovinum aims to help drinks businesses to fuel growth, improve cash flow, open new international markets and benefit from global supply chain efficiencies. It says there are many complexities and headaches that businesses encounter with moving alcohol, domestically and around the world.
Key to the US expansion and enabled by the new debt facility is the ability for Ferovinum to offer significant storage capacity in hubs located in California, Florida, New Jersey and Texas.
“The drinks industry is currently navigating some of the most volatile trading conditions it has faced in the last 30 years,” said co-founder and CEO Mitch Fowler.
“In order to thrive and take advantage of the opportunities this opens up in the space, businesses need access to flexible and capital-efficient funding solutions and an efficient global supply chain.
“This deal helps support our objective to help the industry operate a more capital efficient supply-chain that allows them to focus resources on their core activities and improve margins and profitability across the value chain.”
Co-founder and CFO Dan Gibney added: “By introducing the first securitisation of its kind for the drinks industry, we reinforce our commitment by providing an avenue for wholesale capital markets to support an important segment within food and beverage – an industry we are deeply passionate about and honoured to serve.
“We could not be more excited about partnering with Pollen Street Capital and what it means for the industry.”