North House Foods
Based in Ottawa, our client, North House Foods (the “Company”) offers foods brands, food services and retailers a single source for their food manufacturing needs. The Company’s services include food formulation, production, packaging, and fulfillment.
At the time of our debt financing mandate, demand for North House Foods services outpaced the Company’s capacity. It needed to consolidate from two manufacturing locations to one. In order to do so, the Company needed to lease an adjacent unit and conduct extensive leasehold improvements all while trying to maintain enough working capital to fulfill its growing book of business.
WELCH CAPITAL PARTNERS’ APPROACH
The high growth that the Company was experienced put negative pressure on its traditional banking ratios. As such, we knew that we would have to look beyond charter banks and bring the opportunity to alternative debt funds. We also understood that it must be long term capital with deferred principal payments that would give North House Foods the time to complete its leasehold improvements and start to realize the efficiencies of the consolidated facility.
WELCH CAPITAL PARTNERS’ ADVANTAGE
With leases coming due and customer demand continuing to grow, it was important that the financing was in place to minimize delays with facility consolidation. In addition, we knew the Company could not afford to have the financing structure erode its working capital especially as the price of supplies was increasing quicker than the Company could pass price increases through to its customers.
Given our network of lenders, we quickly determined which lenders would be the right fit in this scenario. The lender worked quickly to close the deal and provided the long-term capital that North House Foods needed.
I’m very grateful to the WCP team who worked closely with us to secure new debt financing. I was very impressed with now quickly Candace and Connor were able to grasp our Company, understand our growth opportunities and secure the financing we needed to scale our operations. They were experts at managing a million moving pieces and ensuring that I fully understood the process along the way.
Paul Gorman, President