A fairtrade drinks company is to expand its vending machine business after securing a seven-figure funding package.
A fairtrade drinks company is to expand its vending machine business after securing a seven-figure funding package.
Vendia secured £4.5 million of funds from Co-operative Bank’s corporate banking office in Birmingham.
The group, which operates across most of the UK, will use the funds to further develop and expand its business.
Vendia’s chief executive, Mike Potts, said the funding will be used to not only grow the business organically, but also through acquisitions.
“The vending market is a fast-moving, rapidly changing environment and one of Vendia’s key advantages is that it can move quickly to meet the demands of its customers,” he added. “High profile celebrity champions of healthy eating, such as Gillian McKeith and Jamie Oliver, have had a huge impact on customer demand and Vendia is flexible enough to react to new eating behaviours.”
Vendia’s chief financial officer, Steve Rawlins, told reporters that this investment would strengthen the group’s position as the fourth largest refreshment vending company in the UK. “Vendia was created through a strategy of “buy and build” and this funding will enable the company to enter a new phase of development and build market share.”
Co-operative’s business development manager, Steve Taylor, said the bank and Vendia have been a natural fit from the start. “Vendia’s ethical policy and use of fairtrade products has a clear synergy with the bank’s own ethical philosophy. Its fairtrade Café Joe range has proved extremely successful and the company has taken significant steps to recycle packaging waste and reduce its carbon footprint.”
Vendia was advised throughout the transaction by accountant Mazars LLP, which was led by corporate finance director Stephen Harris.
The firm identified and approached potential funders to back the deal and helped prepare all the relevant documents. It also negotiated the terms of the deal and managed the due diligence process as well as the white wash procedure and statutory reporting.
Harris said Mazars was the perfect choice to advise Vendia as it already provides audit and tax services to the company.
Moore Stephens Corporate Finance acted as the pre-lending review adviser for Co-operative Bank in Birmingham.
Richard Blood, Moore Stephen’s head of corporate finance, said: “We were pleased to have worked with the Vendia team and the Co-operative Bank on this transaction.”
The transaction was managed by Paul Edwards who was assisted by Will Lodder. Guy Smith provided tax advice.
Vendia offers fairtrade and ethically-traded coffee, tea and hot chocolate through its Café Joe brand. Other products include healthy snacks and drinks, such as cereal bars, fruit juices, dried fruit and nuts, as well as fat and salt-reduced products.
The company has almost 300 staff supplying, operating and servicing more than 4,000 vending machines across the UK with a broad client base including many blue chip companies.
