Food ingredients supplier secures $55m financing deal

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Food ingredients supplier, Jain International Foods, trading in the UK as Sleaford Quality Foods, has secured a $55 million cross-border asset-based lending (ABL) and cashflow facility from private debt fund Blazehill Capital, alongside Wells Fargo USA and KBC. Proceeds from the financing will be used to refinance existing indebtedness and provide additional liquidity to support Jain International Food’s working capital, enhance its food innovation capabilities, and drive cost efficiencies. Jain International Foods is a subsidiary of Jain Farm Fresh Foods Limited, a processor of fruits, vegetables and spices. It consists of three entities, Jain Farm Fresh Food Inc, Sleaford Quality Foods Limited, and Innovafood N.V.. With an expected consolidated revenue of approximately $160 million in 2023, Jain International Foods is well-positioned for growth having shown resilient performance through the pandemic. Lincolnshire-headquartered Sleaford Quality Foods, founded in 1968, was acquired by Jain Farm Fresh Foods in 2010. It specialises in importing, processing, and distributing dehydrated foods and spices, offering over 650 dried and dehydrated food products, including its own Chef William and Our Earth brands. California-based Jain Farm Fresh Foods Inc. specialises in the processing and distribution of dehydrated foods, including bell pepper, tomatoes, and onions, to large global customers. Blazehill Capital and Wells Fargo USA structured a hybrid ABL and cashflow facility which can be drawn in the UK and USA to maximise flexibility. The company was advised by Olympia Capital Partners (led by Nedim Music and Peter Lizza) and Hogan Lovells. Blazehill Capital was advised by a cross-border team from Dentons led by Simon Prendergast. Legal counsel for Wells Fargo was served by Bill Starshak, Prisca Kim, and Randall Klein from Goldberg Kohn. To strengthen its position in the food industry, the company has already implemented operational efficiencies and is committed to exploring expansion opportunities in new food categories and branded product lines. The UK frozen food market is projected to reach £6.1 billion by 2026, underscoring a favourable market environment characterised by increased demand for long shelf-life food products, including vegetables. Similarly strong industry tailwinds in the United States provide the company with multiple opportunities for global growth and expansion. Paul Lawlor, CFO of Jain International Foods Ltd, said: “This new facility represents a pivotal moment in our business journey. As demand for long shelf-life food products grows, we’re positioned to capitalise on burgeoning market opportunities and further enhance our industry leadership. The Blazehill Capital and Wells Fargo teams worked closely with us to understand our unique needs and establish a facility tailored to our ambitions.” Adam Sookia, Head of Investments at Blazehill Capital, said: “We are extremely proud to be working with Jain; a global business with a strong local presence in Lincolnshire, Jain has demonstrated its resilience and best in class governance over recent years. We look forward to seeing the company through its next chapter, setting new standards of food innovation and quality whilst working with partners to ease inflationary pressures on consumers.”

NEXT’s Chief Financial Officer to retire

NEXT’s Chief Financial Officer, Amanda James, is set to step down to retire from full time work.

Amanda has made a significant contribution to the business in her 28 years with NEXT, with the company saying she “has been an exceptional guardian of our finances.” NEXT added: “Our financial position today is testament to her diligence and hard work. The Board is extremely grateful to Amanda for her excellent service to the group.”

Amanda’s successor will be Jonathan Blanchard, currently CFO at Reiss. Jonathan will join NEXT in February 2024 and take over as CFO in July 2024 and also join the Board of Next plc at that time.

Jonathan is currently the CFO and Chief Operating Officer of the Reiss Group, having joined the company as a Board Director in 2017. Jonathan qualified as a Certified Chartered Accountant in 1994 and has over 30 years of experience in finance.

The last 25 years of his career have been at Board level in private equity backed businesses, all of which were in the retail/consumer sectors. Jonathan has a wealth of experience implementing rigorous financial and capital controls; he has also managed several successful private equity transactions.

Jonathan played a critical role at Reiss, not least negotiating and implementing the transition to Total Platform. NEXT has worked closely with Jonathan for over three years and believe that his skills are well suited to NEXT’s financial disciplines and its culture.

Lithia increases Pendragon offer

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Lithia Motors, one of the largest automotive retailers in North America, has increased its offer for Pendragon’s UK motor business and leasing business by £117 million, to £367 million.

The total cash consideration is £397 million, including a previously publicly disclosed subscription for shares in Pendragon.

Last month Nottingham-based car retailer Pendragon revealed plans to sell its UK motor business and leasing business to Lithia in a £250 million deal. They also agreed the terms of a strategic partnership, including the rollout of Pinewood, the company’s dealer management software (DMS) business, to Lithia’s existing 50 UK sites and the creation of a joint venture to accelerate Pinewood’s entry into the attractive North American DMS market.

As part of the transaction, it was announced that Pendragon’s Pinewood division, which operates the company’s proprietary DMS business, would become a standalone entity, retaining Pendragon’s existing listing on the London Stock Exchange and creating a pure play Software as a Service (SaaS) business with an accelerated growth plan.

The increased offer follows unsolicited bids for Pendragon from other companies, including shareholder Hedin and PAG International, and AutoNation.

Midlands businesses call for simpler ways to access capital, as exits loom

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Midlands businesses are calling for simpler and greater ways to access growth capital, as more than half consider selling their business in the next 12 months.

According to BDO LLP’s bi-monthly Economic Engine survey of 500 mid-market businesses, more than a quarter of regional companies (26%) believe they would benefit from a greater variety of borrowing products, if smaller banks were helped to enter the business banking market.

Despite the Bank of England choosing to hold interest rates at 5.25%, following 14 consecutive increases, 15% of Midlands businesses believe that the current rate is too high to take out a new loan.

The survey by the accountancy and business advisory firm also found that nearly a quarter of regional businesses (23%) are searching for new sources of funding abroad due to difficulty accessing capital in the UK, with nearly a third (31%) stating that existing schemes do not provide enough support, such as the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme.

Roger Buckley, corporate finance partner at BDO in the Midlands, said: “The issue of raising capital has been a familiar topic of debate for Midlands businesses over the last few months, as they continue to explore ways to meet their strategic growth ambitions.

“While the Midlands corporate finance market remains a good place to do business in, and is well served by private equity and non-debt growth capital that offers companies with an attractive option, there are frustrations being felt which are leading businesses to consider ways of realising the value within their business.”

According to BDO’s Economic Engine survey, remarkably, more than half (51%) of the Midlands companies surveyed are considering selling their business in the next 12 months.

Buckley added: “If this appetite to sell translates into exit activity then this will undoubtedly drive M&A transactions in the regional market, with other factors, such as an impending general election and a slowing pressure on inflation helping to trigger decisions made by businesses.”

Property developer fined more than £14,000 for breaking bat rules

A Derby-based property developer has been ordered to pay more than £14,400 in a prosecution brought by Natural England for breaching the conditions of a European Protected Species Bat Mitigation Licence. Patrick Weekes, 55, of Radbourne Construction Limited, Vernongate, Derby, pleaded guilty to four offences relating to a housing development in Harehill, near Ashbourne. He was fined £3,200 plus a victim’s surcharge of £1,280 and ordered to pay full prosecution costs of £9,955.17. A European Protected Species Bat Mitigation Licence was issued to the defendant in October 2020, but, the court was told, Natural England’s Wildlife Licensing Service had been made aware of potential breaches of the licence. Natural England decided to prosecute because the breaches were considered so significant as to have impacted the welfare and Favourable Conservation Status of the bat species involved. The breaches left brown long-eared bats with no suitable maternity roosting provision within the site. They also significantly reduced the suitability of roosting opportunities for common pipistrelle bats, as well as endangering the welfare of both species. Following a compliance check, Natural England’s Enforcement Team led a multi-agency site visit in February 2023 which evidenced that the defendant had breached the conditions of his licence on four counts:
  • Failed to install Bitumen type 1F roofing felt with hessian matrix as agreed in the licence. This roofing felt is designed to be non-breathable which mitigates the risks to bats. Breathable roofing membranes, such as the one installed by the defendant, can cause bats to become entangled in the loose fibres and result in their injury and/or death. This is a significant risk to bat welfare.
  • Failed to install the compensation and mitigation measures as agreed in the licence. Mitigation and compensation measures are included in licences to reduce the harm to bats, mitigate for any impacts, and where impacts cannot be mitigated then compensation is designed to maintain the Favourable Conservation Status as required in legislation. In this case, the agreed compensation in the form of various specific ridge crevices and access tiles to allow bats to roost within the roof were not installed, and the loft space set aside in one building to compensate for the loss of a Brown long-eared maternity roost was unsuitable and did not meet the requirements set out in the licence.
  • Failed to complete post-development monitoring as agreed in the licence. Monitoring is vital to understand whether the impacts of bats have been successfully mitigated and compensated for, as well as determining if there are any issues with the compensation that need to be addressed to ensure they remain suitable for use by bats.
  • Stripped the roof of a property containing a Common pipistrelle day roost without direct ecological supervision, as agreed in the licence. Ecologist supervision is required wherever there is a risk that bats can be encountered such as stripping a roof of a property with a confirmed bat roost present. This requirement is to ensure that works are done in a sympathetic way towards bats and if any bats are found during the process they can be safely transferred to a suitable bat box on site.
Sentencing, the court noted that Mr Weekes had acted in contravention to the professional advice provided by both their own ecological consultant and Natural England, and did not carry out work to mitigate the harmful impact on bats when so instructed by Natural England. Steph Bird-Halton, Natural England’s National Delivery Director, said: “Natural England does not take the decision to prosecute lightly. However, where individuals or companies place the welfare or Favourable Conservation Status of protected species at risk, we will not hesitate to take targeted and proportionate enforcement action. “I would like to thank the Bat Conservation Trust’s Wildlife Crime Project for the assistance they provided in this case.”

Green light given for next phase of development at Wymeswold Business Park

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Wymeswold Business Quarter, an industrial development adjoining the existing Wymeswold Industrial Estate, is set to expand with the recent granting of planning permission for its next phase.

Located in Prestwold, near Loughborough, Wymeswold Business Quarter is a meticulously planned industrial development, that currently features 20 purpose-built new industrial units developed to the highest standards, with sizes ranging from 1,900 square feet to 12,000 square feet. The completion of phase two works will provide a further 21 units which will be available for lease or sale in early Q1 2024.

The development has already created 95 local employment opportunities and 80-100 more are expected.

The development sits on land within The Prestwold Estate, managed by the Loughborough-based specialist land development and property consultancy, Mather Jamie. Serving as the strategic land adviser, Mather Jamie played a pivotal role alongside The Prince Group who are the owner and developer, in conceiving the Wymeswold Business Quarter, facilitating planning permission, managing construction, and promoting units for sale or lease.

Hamish Byers, associate director, said: “When phase one was released all units were occupied almost immediately and underlines the success of the development. The demand for industrial units in a rural community is high and with careful planning these projects can help local communities to thrive and alleviate the impact on the environment.”

Geoff Prince, Managing Director of the Prince Group, expressed his gratitude, saying: “Yet again, the advice provided by Mather Jamie has helped secure planning on phase two of this development and assisted us to provide much sought after quality commercial units for small businesses which will also create local employment.”

The Prince Group and Prestwold Estate will be compensating the loss in biodiversity arriving from the development by investing in 14 acres of environmentally enhanced land providing a significant biodiversity benefit. The estate is a major investor in the environment and are again pioneering initiatives in the Leicestershire area for the benefit of nature.

To further reduce the development’s environmental footprint, The Prince Group has implemented several eco-friendly measures, including a green travel plan, ride-to-work scheme, and free bus passes.

Watch the East Midlands Bricks Awards 2023 as the event unfolded

With the East Midlands Bricks Awards over for another year, the event can now be re-lived through a new video of the evening. Property and construction professionals from across the region gathered last month (Thursday 28 September) at the famous Trent Bridge Cricket Ground for Business Link Magazine’s annual event. Recognising and celebrating those behind the changing landscape of our region, rewarding the very best companies, teams and individuals, the occasion offered the perfect opportunity to showcase the outstanding work carried out across the East Midlands over the past year and network with many of the region’s industry leaders over canapés and complementary drinks sponsored by Nicholas Associates. Attendees also heard from Matt Wallace, Director of Estates and Building Services at Leicester City Council, who kicked off the event with the keynote speech. Watch the event and see the list of winners below.  
Ellis Cullen, FHP, Amy Howard, FHP, Ketlin Maeorg, FHP, and Joel Pennington, OMS

Most Active Estate Agent – sponsored by OMS

Winner

FHP

Runners up

BB&J Commercial

Mather Jamie

Sam Crawford, MKM, Andy Myton, David Morley Architects, Becky Rabjohns, Price & Myres, and Clare Swaine, Henry Brothers

Commercial Development of the Year – sponsored by MKM

Winner

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Runners up

HBD – Power Park, Nottingham

Bolsterstone Group Plc, Chesterfield Borough Council – One Waterside Place, Chesterfield

Greg Simpson, Press for Attention PR, Emma Attwood, Cawarden, and William Crooks, Cawarden

Responsible Business of the Year – sponsored by Press for Attention PR

Winner

Cawarden

Runners up

G F Tomlinson

Aspbury Planning Limited

Jamie Duerden, Phoenix Brickwork UK Ltd, and Nic Rotton, Sterling Commercial Finance

Residential Development of the Year – sponsored by Sterling Commercial Finance

Winner

Phoenix Brickwork UK Ltd – St Marks student accommodation, Lincoln

Runners up

Elms Developments – Elms Phase Two Ltd

St James Securities, Grainger – The Condor, Derby

Graham Bancroft, Rushton Hickman Limited, and Robert Cole, Mather Jamie

Deal of the Year – sponsored by Mather Jamie

Winner

Rushton Hickman Limited – Branston Locks deal

Runners up

Bassi Group Nottingham Ltd – Job saving Pizza Hut takeover

Rigby & Co – Aida Factory deal

Gillian Minogue, Clowes Developments, Kate Henderson, Clowes Developments, and Heather Foo, Ward

Developer of the Year – sponsored by Ward

Winner

Clowes Developments

Runners up

Chevin Homes

Brackley Property Developments

Louise Jones, Matthew Montague Architects, and Ben Dawson, Blueprint Interiors

Architects of the Year – sponsored by Blueprint Interiors

Winner

Matthew Montague Architects

Runners up

IMA Architects

Influence Landscape Planning and Design

Clayton Penny, Chevin Homes, William Crooks, Cawarden, and Dan Stack, Chevin Homes

Excellence in Design – sponsored by Cawarden

Winner

Chevin Homes – Amber Farm

Runners up

Marchini Curran Associates – Phoenix cinema and art centre

Trident Construction Services – Lark Hill Retirement Village refurbishment

Justin Sheldon, HBD, and Lee Marshall, Viridis

Sustainable Development of the Year – sponsored by Viridis Building Services Ltd

Winner

HBD – Power Park, Nottingham

Runners up

Henry Brothers Construction – SportPark Pavilion 4, Loughborough

Elms Developments – Elms Phase Two Ltd

Oliver Ramm, RammSanderson, Christian Parnell, Bowmer & Kirkland, and Jon Moore, Bowmer & Kirkland

Contractor of the Year – sponsored by RammSanderson

Winner

Bowmer + Kirkland

Runners up

Cawarden

EE Smith Contracts

Clayton Penny, Chevin Homes, Robin Lee, Streets Chartered Accountants, and Dan Stack, Chevin Homes

Overall Winner

Chevin Homes

  See the event in the images below, taken by Richard Picksley. Thanks to all our sponsors for supporting the East Midlands Bricks Awards 2023. Business Link Magazine looks forward to returning next year for the East Midlands Bricks Awards 2024!
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Sixways Stadium to host the next Motor Source ESFL Finals

An exciting announcement has come from the Motor Source ESFL as the date and venue for 2023/24 season finals was confirmed as Sixways Stadium on Saturday 8th June 2024. The 2023/24 Emergency Services Football League season may only have just kicked off, but we’re already looking forward to celebrating the women’s, veterans and men’s open age competition finals in June next year. In a similar format to last season, all three finals will be played on the same day, making it a full, exciting day of football, with the change of venue from last season bringing the added benefit of a 4G pitch, match day announcer and stadium big screen to add to the atmosphere. Sixways stadium is mostly used for rugby union and association football matches and is the home of Premier 15s side University of Worcester Warriors and Hellenic League Premier Division football side Worcester Raiders. It was also the third Premiership Rugby venue to lay an artificial pitch, but the first to feature organic infill rather than rubber crumb. ESFL co-founder Pete Overton said “We are really excited to be working with the Sixways Stadium events team to organise our league finals. A personal note of thanks to both Tracy and Nicole who helped make this happen. The stadium and its facilities look first class. As the ESFL continues to go from strength to strength we are excited to once again be hosting the finals in such an impressive stadium.” Zoe Critchley from title sponsors Motor Source commented: “As title sponsors of the Motor Source ESFL, we thoroughly enjoy working with the teams throughout the season and hearing their triumphs, not just in the games they play but also in their professional careers and how the league helps them. “After last year’s enjoyable season and unforgettable finals day, we’re ready to raise the bar and make this year’s ESFL Finals truly epic!” Follow and support the teams and results throughout the season at https://www.esfl.co.uk/ where you’ll also be able to buy tickets for the final when they go on sale. If you work in the emergency services, armed forces or teaching, you could be eligible for Motor Source new car discounts for NHS, Police, Fire & Rescue Services, Prison Service, military and teachers. Find out more and see how much you can save at https://www.motorsourcegroup.com/

East Midlands businesses share what they want from next Government ahead of party conferences

Long-term strategies for energy and industry are top of the wishlist for the region’s businesses ahead of the next General Election, according to a new study by East Midlands Chamber. Speeding up the rollout of full-fibre broadband and 5G connectivity, greater investment in road and rail infrastructure projects, and better incentives for upskilling and reskilling people followed closely behind as priorities. The chamber of commerce for Derbyshire, Leicestershire and Nottinghamshire asked businesses to provide views on 20 policy asks in its latest Quarterly Economic Survey, with the development of a long-term energy strategy for the UK ranking as being the most important. Results were compiled to establish a list of top priorities for businesses, which has been published ahead of the upcoming Labour and Conservative party conferences in October. Chris Hobson, director of policy and insight at East Midlands Chamber, said: “With a General Election drawing closer on the horizon, it’s hugely important for the voice of businesses to be heard by the next Government in order to drive sustainable economic growth that delivers jobs and prosperity. “After many years of policy flip-flopping, economic shocks and the resulting uncertainty this has created for businesses, long-term planning appears to be front and centre of minds. “A long-term energy strategy is understandably top of the list given the huge rise in utilities costs for firms and households over the past two years combined with the opportunities business see to deliver future solutions in this space. “It’s closely followed by a comprehensive industrial strategy that finally addresses the UK’s perennial productivity problem – which is crucial to growing output, creating jobs and bringing down inflation. “In our regional economic blueprint, A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, launched in Westminster last year, we highlighted the importance of infrastructure – that is, both digital and transport – as one of ‘four Is’ to spearheading growth. “Businesses are telling us they want to see real improvements across broadband and 5G connectivity, which are both crucial to 21st century working, while investing in our roads and rail is crucial to their future success – an important consideration at a time Government is deliberating over the future of HS2 and our region continues to be bottom of the pile for public transport investment. “We have also spoken in our manifesto about ‘getting the basics right’ and ‘growing our competitiveness the right way’, and both these themes are reflected in our survey as firms tell us they want the broken business rates to be made fit for purpose and better incentives to support the net zero agenda.” Policy priorities for East Midlands businesses The responses on policy priorities were gathered by East Midlands Chamber in August and September 2023 as part of its Quarterly Economic Survey, in which 296 businesses across Derbyshire, Leicestershire and Nottinghamshire took part. They were presented with a list of 20 policy asks of Government and asked to score them based on importance to their organisation, providing additional comments as to why. The top 10 priority areas, in order, were: · The development of a long-term Energy Strategy for the UK · The development of a long-term Industrial Strategy for the UK · Speeding up the rollout of full-fibre broadband · Greater investment in local infrastructure projects (road, rail) · More flexible/generous incentives for investment in staff development/reskilling (including application of Apprenticeship Levy) · Greater investment in major infrastructure projects (road, rail) · Speeding up the rollout of 5G technology · Comprehensive reform of the business rates system · Greater investment in integrated public transport networks · More flexible/generous incentives for developments associated with the green agenda.

Property developer snaps up 54-acre industrial & logistics site in Daventry

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Property developer Godwin Developments has exchanged contracts with a consortium of landowners on a 54-acre site in Daventry, which it intends to transform into a high-quality, sustainability-led employment hub. The site – known as ‘South East Gateway’ – benefits from an existing allocation of 32 acres in the Daventry Local Plan for industrial, logistics and business uses. It is well positioned off the A45 London Road at the southeastern entry point into the town, next to similar uses, and offers quick access to the M1 Junction 16 which lies only 6 miles away. Marcus Phayer, development director, industrial and logistics, at Godwin Developments, said: “We are really pleased to have secured this key allocated employment site in Daventry. With its proximity to the town centre and the M1 motorway, as well as the Grade A specification we have in mind, we are certain it would attract strong interest from potential occupiers. “Our proactive and collaborative approach, combined with our proven track record, has enabled us to conclude this deal despite the current turbulent market conditions. “We are keen to work closely with West Northamptonshire Council and local stakeholders, and are targeting a planning submission for circa 500,000 square feet of employment space in the first half of 2024. “We also continue to seek opportunities in well-established distribution corridors, close to major population centres and transport networks – whether they are ‘oven ready’, allocated for employment, or strategic land promotions.” Godwin Developments was advised by Fisher German and Irwin Mitchell, with Howkins and Harrisons acting as the disposing land agent. Retained advisors will be Fisher German, CBRE, and Howkins and Harrison.