2 Sisters makes further progress on turnaround plan

By Rod Addy

- Last updated on GMT

The refinancing will improve free cash flow within the business, 2 Sisters said
The refinancing will improve free cash flow within the business, 2 Sisters said

Related tags Meat & Seafood Finance

2 Sisters Food Group has secured a £475m bond and an £80m revolving credit facility, representing a successful refinancing of the business and enabling it to boost financial performance and generate further cash.

The business said the new bond was due to mature in 2025, while the credit facility could be increased to £90m and the announcement marked the 'next significant stage of its turnaround strategy'.

Investors across the UK, US and Europe backed the group with the new bond, allowing it to cement its progress over the past two years and provide funding to build on a strong full-year financial performance. The refinancing had also enabled it to repay its existing bonds and loans in full, explained the company, which last month acquired restaurant chain Gourmet Burger Kitchen​ and announced it had sold part of Fox's Biscuits in a £246m deal​.

This is very good news for 2 Sisters and its stakeholders," ​said Craig Tomkinson, group chief financial officer. "It shows great confidence in our business and by securing funding until 2025, gives us the freedom to execute our plans for the future.

'A milestone in the turnaround plan'

"We are very proud of our results to date in the turnaround of the business, and the delevering of our balance sheet. This refinance marks a milestone in the progress of the turnaround plan, and gives a platform for further improved free cash flow generation into the future. 

“Not only is this good news for our business, but all 18,000 colleagues, 16,000 members of our pension schemes, and our investors. Further, it provides security and reassurance to the thousands of jobs and livelihoods across our wider supply chain – customers, our suppliers and in turn their suppliers. We are upbeat about our growth plans and see further opportunities for 2021 as we prepare for a post-COVID and post-Brexit environment.”​ 

Group chief executive Ronald Kers said: “It is very gratifying to see the strong support of investors in our new bond offering, which underlines the market’s confidence in our business and its belief in our on-going turnaround strategy.

"We are also pleased with the acceleration of our performance over the past 18 months, and despite the challenges that COVID brings with it, we are confident about our future plans and our ability to continue to improve our business. We would like to thank our bond investors for their continued support and of course all of our colleagues who have helped us to make the turnaround happen.​”

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