Daisy Group could be set to make fresh acquisitions, after amassing a £200 million war chest.
The distributor signed the deal with a group of six banks and the loan comprises a £50 million three year loan and a £150 million revolving credit facility, which effectively operates in the same way as an overdraft. The banks, Barclays Bank, HSBC Bank, Lloyds Banking Group, The Royal Bank of Scotland and Yorkshire Bank, are each providing £33.3m.
Daisy Group said the loan will replace its existing £140 million loan and be used to provide working capital and finance for future acquisitions. Daisy Group's chief financial officer Steve Smith said: 'We are delighted with the appetite shown by our banking partners to continue to support our strategy and are pleased to welcome ING into our banking arrangement. In 2010 we put together facilities with three banks, each committing £25 million, and subsequently expanded the club to five banks with an average commitment of £28 million each. The terms of these facilities reflect the banks’ confidence in the group’s continuing financial progress and strategy.
'The new and enlarged facilities will enable us, in line with our stated strategy, to continue to consolidate the fragmented reseller market place where we see a clear path to generate shareholder value.'
Author: Graeme Neill