Consumer products companies face unique challenges impacting cash flow and their ability to quickly adapt to the ebb and flow of sales demand, supply chain issues, or other market forces. Many companies enjoy growth opportunities that require more flexible capital, such as gearing up for increased consumer demand, a large new customer, or investing in a new product or service.
In today’s rapidly evolving business landscape, asset-based lending (ABL) provides the flexibility, liquidity, and confidence needed to transition through these challenges and capitalize on opportunities. It accommodates growth while fostering operational agility with reliable access to capital.
From a seasonally-impacted board game maker to trending food products companies to emerging health and wellness brands, Gibraltar Business Capital (GBC) has helped diverse, growing consumer products companies build resilience and thrive.
We are sharing three recent transactions below as examples of the alternative of asset-based lending as a tool to help consumer products companies navigate industry-specific challenges when other options are limited or too restrictive.
- Added Flexibility to Navigate Seasonality
GBC recently supported USAopoly, a game creator and manufacturer that needed a nimble financing model to accommodate fluctuating capital needs during peak sales periods. Asset-based lending’s reliance on asset value over fluctuating performance ratios created new flexibility for this company. The team also incorporated an over-advance feature to provide even more flexibility in keeping pace with peak seasonal demand while meeting design and manufacturing requirements.
- Driving New Initiatives and Growth in Category-Specific Capabilities
In another example, GBC provided American Nuts, a sponsor-backed specialty foods company, with a $18MM senior secured credit facility. This new credit facility allowed the food products company to grow and enhance its initiatives in category management, merchandising services, and value-added distribution services, which are critical to the success of retail consumer product brands.
- Supporting Industry Financial Sponsors to Create Brand Carve-Outs
GBC recently partnered with an existing private equity group that acquired a leading North American supplement manufacturer to acquire and carve out a new brand from an existing portfolio of brands. GBC provided $24MM in acquisition financing to support the acquisition, enabling the company to capitalize on changing consumer trends and preferences.
Country Life was acquired from a subsidiary of Kikkoman that sells the leading soy sauce brand and related products. Country Life operates a portfolio of brands in the natural supplements, sports nutrition, and personal care markets, including Country Life Vitamins, Desert Essence Personal Care, and Biochem Protein.
Are you an advisor, company leader, or financial sponsor working with a consumer products company facing difficulties stemming from a constraining financing relationship? Talk to a member of our experienced sales team to learn how your company’s valuable assets can help you attain the flexible financing needed to grow.
