Shawbrook Bank has provided a £26m multi-facility funding solution that enables Esterform Packaging Ltd (EPL) to refinance its debt and increase manufacturing of preform containers.
The company aims to meet growing demand in the food and beverage sector with this new agreement.
EPL is a leading supplier of PET preforms and containers for the beverage, food and household markets in the UK. Founded in Liverpool in 1999, the company expanded its production facilities and relocated to Tenbury Wells in 2001.
EPL set up its own purpose-built preform manufacturing site in Leeds in 2005. The company further expanded its portfolio with a new recycled polyethylene terephthalate (rPET) production site in 2019.
With the ongoing expansion of the business and the impact of rPET in the industry, EPL has decided to exit its current funding agreements and refocus investments to meet increased demand in the beverage and food sector.
Mark Tyne, Managing Director at EPL said: “We have seen a substantial increase in demand for preform packaging, particularly in the beverage sector, and with established long-term relationships with key players in the industry, it is time for us to ramp up our manufacturing.
“Creation of our own rPET lines represents the start of a new journey and our next step is to consolidate existing debt to improve efficiencies and increase production. The team at Shawbrook took all this into consideration and created a bespoke solution that delivered the flexibility we need at this time.”
Shawbrook is a specialist UK savings and lending bank founded in 2011 to serve the needs of SMEs and individuals in the UK with a range of lending and saving products.
Kelly Henney, Senior Relationship Director at Shawbrook said: “EPL is a market leader in its sector and something of a pioneer both in terms of industrial efficiency and in its use of recycled plastics.
“At Shawbrook we know the sector well and, we saw the potential in this business and prepared a funding package that ensured EPL could meet its upcoming manufacturing targets as well as its long term plans.”