Menzies Distribution has secured a new £14m term loan with Royal Bank of Scotland.

Together with existing cash funds, the loan has enabled the company to refinance its recent short-term debt, used to fund the acquisition of Bibby Distribution in December 2020.

It will also provide additional funding to support the future growth of the business.

“This strategic refinancing is an important step in creating a strong and cost-effective capital structure, ready to support the exciting growth and investment opportunities across all our businesses," explained Menzies chief financial officer Paul McCourt. "It will further strengthen our balance sheet and significantly increase our flexibility in pursuing organic growth and selective bolt-on acquisitions which align with our strategy.

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“I would like to sincerely thank and acknowledge the highly supportive team at Royal Bank of Scotland, which has been a key strategic partner for Menzies alongside Endless since September 2018.”

David Amos, Royal Bank of Scotland head of UK financing solutions (North & Scotland), said: “The Royal Bank of Scotland is delighted to have extended our support for Menzies Distribution. This is a high-quality business with a first-class management team, highly supportive shareholders, consistently strong financial performance and a clear strategy for continued growth and diversification. It is a pleasure to work with Paul McCourt and all the team at Menzies, and we look forward to continuing our partnership on future projects.”

Aidan Robson, partner at Endless LLP, added: “We are very pleased with the significant progress made by the business in the last 12 months. The business has delivered strong results as well as completing two strategic acquisitions. This refinancing is testament to management’s ongoing successful strategy and the confidence of a major external lender in the exciting prospects for Menzies.”