Premier independent Invoice and Asset Based Lender, Venture Finance, is pleased to announce the latest addition to its client portfolio, Cardinal Brands Limited one of the UK’s leading manufacturers of carbonless stationary products. Cardinal Brands enlisted the support of Venture to provide the company with a funding package to enable the UK arm to facilitate a management buy-out, comprising of Invoice Discounting, Bad Debt Protection and a Small Firms Loan Guarantee facility.
Cardinal Brands provides well-known retailers including Rymans, Banner, WHSmith and Staples with own-branded stationary products. In addition, the company manufactures two established brands, Adams and Kopirite. Currently, around 45 per cent of the company’s sales is Adams branded stationary, most of which is purchased by Staples.
In 2008, due to an acquisition of its US holding company, Managing Director Michael Deane was presented with a unique opportunity to purchase the UK division of the business. Working closely with accountancy firm Brown Butler during the acquisition process, Venture was enlisted to provide financial help and support the deal.
Michael Deane said: “Since I took the role as Managing Director, I’ve constantly been looking for ways to improve how our business is running. It was an exciting opportunity for us to become independent, and so during the process I needed to ensure I had the appropriate support and financial security to make a success.”
James White, corporate finance partner at accountancy firm Brown Butler comments: “After assessing Cardinal Brands requirements, it was clear they needed reliable financial support so we recommended that they speak to Venture. We were delighted to help assist Michael on the acquisition, as it’s clear that Michael has a clear vision for the company’s future.”
Michael Deane comments: “Venture was strongly recommended by my accountant as an organisation, which could provide me with the right level of financial support. In addition, conscious of the current economic climate, Venture were the only company able to deliver a package that included the Small Firms Loan Guarantee – something which will boost our cashflow immediately.”
Following a close examination of how Cardinal Brands was being run, Venture has developed a bespoke package to provide financial support which would provide the necessary headroom to enable the break away from the parent company. In December 2008, the package came into fruition.
Fraser Irvine, Business Development Manager, Venture Finance said: “Michael’s got a lot of exciting plans and ideas for the company. The potential of what they could achieve as they enter this new phase in the business is incredible. We’re really pleased that we can help Cardinal Brands move forward and become the organisation it deserves to be. Our tailor-made package ensures that Cardinal Brands get the best deal and financial security that suits them.”
Cardinal Brands Ltd was first established in the UK in 2002 and was initially a division of Cardinal Brands Inc USA. The company operates a predominately stock business working from customer forecasts, forward orders and historic sales data.
< back
