Food Producer Acquires Competitor's Facility

The Situation

An internationally recognized food producer encountered a once-in-a-lifetime opportunity to purchase a competitor’s facility. Strategically located, the facility offers potential savings in both distribution and logistical costs while also providing a major boost in production. The deal became available at a competitive price through a business relationship, and the client needed to act fast, within 20 days, to secure the opportunity before it went to market.

The company had a lender willing to provide $15MM toward the deal, but there was a $10MM gap between the client and their opportunity. Private equity was also ruled out as an option. A strategic partner of National Business Capital referred the company to our advisors at the beginning of December 2024, seeking a solution to close by year-end.

How We Helped

National Business Capital’s finance team collaborated with both the buyer and seller’s legal counsel, along with the senior lender, to facilitate the process. In only 20 days, National Business Capital’s direct lending group extended $10MM in sub-debt to fill the capital gap and finalize the company’s transaction within the critical timeline. The acquisition equips one of the nation’s high-end steak providers with a powerful new facility in a key location. It has the potential to 10X annual revenue and production while reducing logistics costs and bolstering profits.

Where They Are Today

The acquisition equips a leading food producer with a powerful new facility in a key location. New production capabilities will enable higher volume orders, while a new distribution hub will reduce logistics costs. Overall, their move has the potential to 10X annual revenue and output while reducing overhead and bolstering profits.