Clydesdale Bank plc, the sister bank of Yorkshire Bank, has provided a comprehensive funding package as part of a deal to refinance Liverpool-based nutritional products company, Vitaflo.
The deal, which also includes £3 million from Merseyside Special Investment Fund (MSIF) Venture Fund and directors’ own investment, will allow for the exit of non-management shareholders including MSIF’s First Venture and Mezzanine Funds following their initial investment of £500,000 in 1998.
Vitaflo has developed, and sells worldwide, an innovative range of nutritional products to manage metabolic diseases and disease-related malnutrition. It is one of the global market leaders in its industry and sells products to patients via the NHS and wholesalers in the UK, and through distributors overseas.
The company was formed in 1997 by the acquisition of a small Scottish Company, which was relocated to its current site at Brunswick Dock in 1998.
Vitaflo is run by directors Tony Partington, Bill MacNab and Maura O’Donnell and employs 41 staff.
From a turnover of £200,000 in 1998, the company has grown to its current £12 million turnover and continued growth in turnover, profits and staff is forecast.
Paul Argent, specialist and acquisition finance director with Clydesdale Bank plc led the deal with fellow director, Minesh Patel. Argent added: “This funding will allow the management team to purse their plans for the future. Vitaflo has been a terrific success story and with ongoing advances in the field of biochemistry, there is major potential for growth."
Mark Fuller, managing director of MSIF’s Fund Manager said: “I’m absolutely delighted with this transaction. Our ability to foster and nurture great opportunities has been demonstrated and, very importantly, to ultimately realise value for our investors and our long term business.”
Legal advisors involved in the transaction were Paul Rimmer, James Kerrigan and Andrew Noon at DLA who acted for MSIF and Kieran Donovan at DWF who acted for the management. Financial due diligence was undertaken by KPMG.