IFS Accompanies Burg Groep with European Single Bank Asset Based Group financing

Mid-December 2018, Burg Groep, based in Heerhugowaard, realised the restructuring and refinancing of its existing financing arrangement into a European single bank group financing with new house bank ING. Additionally, the existing financing facilities where expanded in support of Burg Groep’s investment program and anticipated company growth. In addition, ING shall provide cash management services, bank guarantees and any interest and currency hedging. Integrated Finance Solutions (IFS) advised and accompanied Burg Groep throughout the entire refinancing process.

Burg Groep
Burg Groep is a family business, founded when Mr. Bakker purchased a vinegar factory from ‘weduwe Groenland en Zn’ in 1947. In 1950, it was syrup that was first added to the assortment. Over time, the company in The Netherlands was able to grow as a result of various acquisitions. Acquisitive growth continued internationally by acquisitions in Belgium, France, Germany and The Czech Republic.
Nowadays, Burg Groep is the leading producer and international top supplier of fermented vinegars, syrups and liquid household detergents. As for natural vinegar, Burg Groep is market leader in Europe. The company wishes to continue further growth, based on an annual revenue of about € 100 mln and approximately 200 employees.

There are three divisions within the Burg Groep activity spectrum, namely vinegar, syrup and non-food. It produces both private label products as well as products under its own brand name. In the non-food sector, Burg Groep is quite unique as it produces a wide range of products such as vinegar- cleaner and detergent, bleach and citronella. Burg Groep delivers mainly to a very diverse triple-A customer base, both in the retail and out-of-home segment and the vinegar processing industry. Burg Groep owns breweries in The Netherlands, Belgium, France, Germany and The Czech Republic and enjoys great advantage from this local presence. In the syrup market, Burg Groep is mainly active in The Netherlands and Scandinavia.

Sustainability is a significant topic for Burg Groep. Both internally and externally a code of conduct is applied, referring to Global Compact, the internationally recognised principles of The United Nations. Burg Groep is run by an experienced and expert management team.

The company foresees multiple chances with regards to product- and process innovation and the supply chain. Burg Groep shall be able to realise the foreseen growth because of its product innovation power, its experience and the high quality of its employees. The attractive vinegar market is the main rationale for the (planned) expansion and investments in the production capacity in The Netherlands, Belgium, France, Germany and The Czech Republic. Burg Groep’s original credit structure seemed no longer fitting for the companies foreseen growth. The new (extended) bank facilitates, arranged by new house bank ING, shall support the company’s strategy for the coming years.

More information?
For more information please contact Integrated Finance Solutions at +31 30 760 2110.