Ian Macleod Distillers has secured an extended £80million asset based lending package to support the recently announced revival of the Lowland malt whisky brand, Rosebank, alongside fueling organic growth plans.
The funding has been provided jointly by Bank of Scotland and PNC Business Credit.
Ian Macleod Distillers, which has a turnover of £78million and employs over 150 people, is an independent, family-owned distiller. Its portfolio of premium spirits includes Glengoyne, Tamdhu, Isle of Skye and Smokehead Scotch whiskies. Last year the company also acquired the popular Edinburgh Gin brand.
As one of Scotland’s leading spirits companies, the business currently produces and sells over 15 million bottles of spirits every year.
The asset based lending facility has been secured against the company’s inventory of whisky stocks. In addition, Bank of Scotland is providing all day-to-day operational banking services, including a £250,000 overdraft facility.
Last month Ian Macleod Distillers reached an agreement, when planning is granted, to buy Rosebank’s Falkirk site Scottish Canals. It has separately acquired the Rosebank trademark and stocks from the distillery’s previous owner.
Mike Younger, Finance Director at Ian Macleod Distillers, commented: “Bringing the iconic Rosebank distillery back to life is a big project, and one that we’re incredibly excited about. We are very pleased that we now have a funding package which allows us to both rebuild Rosebank and fund the general expansion of the business.
“Asset based lending is ideal for us, as it provides highly flexible funds secured against our appreciating maturing whisky stocks.”
Andy Edwards, Mid Markets Relationship Director, Bank of Scotland Commercial Banking, added: “This larger asset based facility will provide Ian Macleod Distillers with the capex funding required to bring the Rosebank brand back to its former glory.”
“The Bank of Scotland is committed to helping Britain prosper through supporting firms like Ian Macleod Distillers. The firm is seeing significant organic growth and is continuing to build strong sales revenues in its core export markets including Australasia, Europe, the Far East and North and South America, which stands it in good stead for the future.”
Alistair Hood, Regional Director, North East & Scotland, PNC Business Credit, commented:
“PNC is delighted to work alongside Bank of Scotland in supporting Ian Macleod Distillers on its new phase of growth. The combined expertise of both PNC and Bank of Scotland created the ideal platform for the long term plans of this highly distinguished Scottish success story.”