Belfast-headquartered Structured Asset-Based Lending (ABL) specialist, Upstream, has successfully completed one of its first major transactions since its recent management buyout (MBO), completing a multimillion-pound deal to help finance the acquisition of one of Northern Ireland’s largest confectionery businesses.
Courtney & Nelson, a 65-year-old confectionery wholesaler and distribution company based in Belfast with around 40 staff, has been acquired by leading Northern Ireland businessman Paul Allen in a major deal facilitated by Upstream which supported the transaction by providing a significant Structured ABL funding solution – unlocking the assets of the business to provide both acquisition finance and ongoing working capital to fund the future growth plans of the management team.
The tailored funding, which leveraged a combination of trading assets including Courtney & Nelson’s Supply Chain, Debtors, Inventory and Commercial Vehicles, assured the acquisition team of flexible and scalable finance, thereby facilitating a smooth and seamless transaction for all parties.
Paul Allen was at the helm of Northern Ireland-based snacks business Tayto Group as CEO for over 17 years before leading the acquisitions and successful growth of local bakery product producer Genesis and premium sauce maker Pasta King based in England.
“Courtney & Nelson is a successful, established business with great products, strong networks and partners and an excellent team. I’m looking forward to building on that success in the months and years ahead, developing new markets and maximising the incredible assets we have,” Paul Allen said.
“This is an important acquisition which was made possible by the partnership we have with Upstream which has provided a highly competitive Structured ABL facility. This enabled us to generate additional funds providing the headroom to complete the acquisition quickly and unlock working capital so we could get stuck in straight away.”
Courtney & Nelson supplies sweets, crisps and drinks to around 1,400 outlets across Northern Ireland including newsagents, forecourts, grocers and convenience stores, schools, leisure centres and cinemas.
Welcoming the transaction, Lewis McCallan, ABL Partner, Upstream, said:
“We are delighted to support Paul and his team, as his preferred funding partner, in the purchase of Courtney & Nelson (C&N).
Our Structured Asset Based Lending (ABL) solution ensured the acquisition of Courtney & Nelson through fast access to capital, by unlocking the value of Balance Sheet assets.
The combination of revolving credit lines and term borrowing provided the necessary acquisition funding and working capital to support existing and future growth.
This transaction demonstrates the power of a structured ABL solution. By maximising the value of key asset classes within the Balance Sheet – from Stock and Debtors, to Plant, Machinery, Equipment, Vehicles, Product Brand and trading property – a business can benefit from the release of significant cash.
In the case of C&N, this supported both the acquisition and future growth strategy, however this valuable capital can be used in different ways from realigning finances, funding of new projects, to upgrading or investing in new equipment thereby ensuring that businesses can be supported at different stages of their growth trajectory.
The Upstream team wishes C&N every success for the future – and as a truly independent, and locally managed ABL funder, we believe this is only the beginning of us partnering growth focused business owners across our chosen markets.”
Upstream was founded by CEO Judith Totten MBE in June 2011 as a boutique SME funding provider.
Backed by London-based Pollen Street Capital, which has committed a new £150 million facility to accelerate the ambitious and sustainable expansion of the business, Upstream has now evolved into a specialist structured ABL lender, challenging the mainstream market with a comprehensive and tailored offering for SME and mid-corporate business owners.
John Metcalfe, Acquisition and Relationship Manager at Upstream, said:
“Businesses are beginning to wake up to the benefits of ABL funding. Increasingly, it is being viewed as a highly competitive finance solution of choice, and one which can be tailored to individual needs. By leveraging assets, ABL offers great flexibility and scalability, ensuring confidence for business owners to make decisions.
At Upstream we pride ourselves in our agile approach. We recognise the need for swift decision making and we have significant local autonomy to ensure that you will have access to facilities in a time frame that suits your plans. You will have a Relationship focused partner in Upstream, who will align to your business strategy and develop a tailored solution to match your needs today and well into the future. We want to empower growth and economic development across Ireland. Given the current challenges and growing caution of some funders, there’s never been a better time to explore the options.”
Upstream has already built a reputation for flexibility and agility in providing tailored funding solutions and it guarantees all businesses access to an experienced local decision-maker who understands the importance of swift and clear feedback, coupled with guidance and direction in structuring the most appropriate funding facility for now and into the future.