Lenders discover the perfect blend for maltsters

Oct 1 2008 by Peter McCusker, The Journal

TWO of the region’s main lenders joined forces to provide cash support of £27.5m for a massive expansion of production at a family-owned maltster.

Berwick-based Simpsons Malt, the UK’s largest independent maltster, secured the substantial funding package from a banking club co-led by Lloyds TSB Corporate Markets, Lloyds TSB Commercial Finance and Barclays Bank.

Simpsons Malt supplies malted barley and other specialist malts to brewing, distilling and food industries in the UK and worldwide.

The funding package includes specific inventory finance for malting barley purchases and £27.5m plant and machinery finance.

Mike Stubbins, relationship director at Lloyds TSB Corporate Markets, said: “Simpsons Malt is not only a shining example of a North-Eastern family-run firm but also an outstanding and successful modern business, regionally, nationally and globally.

“The demand from the global brewing industry and for malt whisky in foreign markets such as India and the Far East indicates that production of quality malted barley is a growth industry.

“The skill of the Simpsons Malt management team, its careful investment plans, and the quality of its malts, mean that the firm has a promising future; and Lloyds TSB is proud to be right behind it with long-term support on its doorstep.”

Andy Hall, head of business development for Barclays Commercial in Scotland, said: “Barclays Commercial is delighted to become a trusted funding partner of Simpsons Malt, a respected and well-run firm with a critical role in supplying many well known Scottish brewers and distillers.

“With a management team we hold in very high regard, we have huge confidence in their ability to drive the company forward through the next exciting stage of their development.

“The professionalism and honesty which the Simpsons team displays in all aspects of its business is refreshing and we very much look forward to working with them in the years ahead.

“It is another significant deal for Barclays Commercial and we look forward to supporting Simpsons Malt as we move forward.”