Bibby Financial Services (BFS) has provided a new funding package worth £4.5 million to Kilfrost Group, the global leader in safety critical frost protection chemistry and rheology. The funding package provides combined invoice finance, trade finance and foreign exchange facilities.
BFS was introduced to the business by Deloitte, who were acting as advisor to Kilfrost.
Set up in the 1930s, Kilfrost is a third generation, family-owned business which pioneered the first ever de and anti-icing solutions for the aviation industry. Having expanded to serve the rail and ground sectors as well, they have recently developed a world-first low viscosity heat transfer fluid which is set to revolutionise food and drink production globally.
Kilfrost Group CEO, Gary Lydiate said: “We were delighted to work with Bibby Financial Services as they share our family values, as well as North of England heritage. Their support has enabled us to fast-track the launch of our exciting new range of low viscosity heat transfer fluids into the food production, heating ventilation and air conditioning, and green technology sectors. We’re very much looking forward to working with the BFS team in the months and years to come.”
Based in Haltwhistle, Northumberland in the North East of England, the business’s de-icing division supplies 127 different airports, airlines, and dedicated third party aviation service providers in Europe alone.
David McIntyre, Corporate Manager at BFS led the transaction which required close engagement with both the introducer and client to bring the deal to a close. Discussing the process, David said: “When we were initially approached to consider the opportunity, we quickly understood the enormous impact this business has within a very specialist market. For example, in wintery conditions, if a scheduled flight is delayed due to difficult weather conditions, the potential financial penalties to these airlines are enormous.
“Kilfrost operates in an environment where speed of response is crucial, and access to the product must be provided at very short notice. This is a market leading business and for us to be chosen as its future funding partner is a laudable success. Our speed of response, appetite to support the business, and above all our demonstrable flexibility were the key reasons we won the transaction in the face of competition.
“With a highly seasonal business, funding requirements can spike enormously. Having the flexibility of the combined invoice finance and trade finance facilities provides the support that the business needs.”