HSBC provides £73m growth funding for Suffolk malt producer
Muntons has secured £73 million funding from HSBC UK to meet consumer demand for the Suffolk company’s malt produce.
The five-year asset based lending (ABL) facility from HSBC will allow the Stowmarket-based company to expand by investing in capital projects – the first of which is being made in response to the increasing demand among consumers for its malted ingredients, used in breakfast cereals, confectionery and malted beverages.
Established in 1921, Muntons is a global leader in the supply of malts, malt extracts, flours and flakes to the food and drinks industry. In May 2019, Muntons announced a £4.5million investment in its Stowmarket plant to Increase its malt extract capacity.
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."
Muntons, which encompasses both Muntons Malt and Muntons Malted Ingredients, employs over 250 staff in the UK with a further 70 staff internationally. Muntons Malt serves the brewing and distilling industries while Muntons Malted Ingredients focuses on food industries and non-alcoholic beverages.
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".