Muntons, a manufacturer and producer of malted products, is set to expand following a £73m committed five-year asset based lending (ABL) facility from HSBC UK.
Muntons secures £73m ABL funding facility from HSBC
The family-owned business, which has its headquarters in Stowmarket, will use the funding to invest in capital projects, the first of which is being made in response to the increasing demand among consumers for malted ingredients, used in products such as breakfast cereals, confectionery and malted beverages.
Andy Simpson, group finance director at Muntons, said: "This is an exciting time for Muntons and we're delighted that HSBC UK has supported us with our significant expansion plans.
"We purchase more than 250,000 tonnes of barley every year from within the UK, and our new plans to increase our manufacturing capabilities mark the start of a fantastic new chapter for us."
Ivor McTighe, HSBC UK business development director for ABL, added: "Long-established Muntons is a fantastic business investing for the future and supporting the UK economy.
"It exports worldwide and our committed ABL facility will enable them to explore additional opportunities for growth outside of Europe."
Jason Smithers, HSBC UK area director for Cambridge, Essex & Suffolk, said the £73m facility, organised by HSBC UK relationship director Jamie Bignal, offered Muntons "improved liquidity, financial stability and a more predictable cash flow compared to other funding packages, enabling the business to set its sights on a larger-scale expansion".
Muntons, which encompasses both Muntons Malt and Muntons Malted Ingredients, employs over 250 staff in the UK with a further 70 staff internationally.
As one of the world’s largest banks, HSBC supports over 1 million businesses in the UK and more than 37 million customers worldwide. This year, we won ‘Best Business Banking Provider’ at the British Bank Awards 2018.
We are committed to working with UK SMEs to help them realise their ambitions and over the past three years have committed £34bn in lending to enterprises in this sector.
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