R&R Ice Cream scoops new credit facility worth £50.7m

HSBC has announced the agreement of a 60 million euro (50.7m) revolving credit facility with Northallerton-based R&R Ice Cream, the company behind famous brands such as Skinny Cow.

The new five-year facility involved HSBC's Yorkshire Corporate Banking team acting as arranger along with Barclays Capital and Credit Suisse International to provide a working capital base to "drive further growth for the business".

The HSBC Team also acted as co-manager along with joint bookrunners Barclays Capital and Credit Suisse International on a 350m euro (295.97m) bond issue which sees R&R Ice Cream repay its existing bank debt and consolidate its banking groups from more than 40 to three.

Many people will be surprised to hear that Yorkshire, which can hardly claim to have a tropical climate, is home to a major player in the ice cream sector.

The company was founded a quarter of a century ago, when Yorkshire farmer Jonathan Ropner acquired Cardosi, a local ice cream manufacturer. Richmond Ice Cream was born.

In 1995, Windsor Creameries became the first of Richmond's acquisitions, as part of a strategy which aimed to turn the company into the UK's leading investor in ice cream manufacturing. R&R Ice Cream was formed in 2006 by bringing together Richmond Ice Cream with Roncadin in Germany.

The company, the leading supplier of private label ice cream in Europe, also produces branded products like FAB, Rowntree Fruit Pastille and Ribena lollies and Skinny Cow ice cream from factories in Yorkshire, Germany, France and Poland. It is a supplier to major European retailers including Asda, Aldi, Edeka, Sainsburys, Marks & Spencer and Tesco.

James Lambert, the chief executive of R&R Ice Cream, said: "The highly successful bond issue and related revolving credit facility highlights the confidence of the investor and banking community in our business."

Martin Lunt, HSBC Head of Corporate Banking, Yorkshire & North East, said: "This is an ambitious, acquisitive and innovative business. The combination of simplified banking alongside a sound working capital base over the long term will provide a strong footing for this local business to fulfil its ambitions."