Strong financial performance and robust operating profits have enabled Eden Springs to secure a new credit/acquisition facility to fund future growth.
Sourced via a group of top-tier European banks, the €150m war chest will enable the company to consolidate and build upon its position as a provider of drinks solutions to the workplace, the company said.
Eden Springs’ group CEO, Raanan Zilberman, said: “We are delighted to have secured this deal in challenging economic times for banking in Europe, and deem it a vote of confidence by the financial system in our business. We will dedicate a significant part of the capital raised to enlarge and expand the company’s business through organic growth and acquisitions of various companies.”
The credit/acquisition facility of €150m is secured for a period of five years. It will allow the refinancing of current liabilities within the company and will be used as working capital for the group’s business in Europe. The funds will also finance new acquisitions and investments in the near future, that will enable the expansion of Eden Spring’s offer and its international coverage.
The €150m credit/acquisition facility was signed with a consortium of several European banks, headed by RaboBank International and the Royal Bank of Scotland.
In recent years, the company significantly reduced its financial gearing, through a strong cash flow management strategy. Current operating profit, before depreciation and amortisation, is now at €46m per year, accounting for approximately 19% of turnover.
Zilberman, added: “Completing such an extensive credit-securing process, especially in such difficult times in the financial industry in Europe, attests above all to the confidence which the European financial bodies and systems have in the group, and to the company’s financial and business strength.
“A considerable portion of the credit/acquisition facility will be dedicated to consummating the company’s strategic decision to expand the line of products and services it offers its customers, and to continued investments and acquisitions of significant business activities in Europe.”