FOOD AND drinks wholesaler BWG has secured funding from AIB to execute its proposed €40 million-plus acquisition of Ennis-based rival Mangans.
Documents lodged with the Companies Office last month show that First BWG Group Ltd has amended its existing loan agreement with AIB, which provided the finance for a management-led €390 million takeover of the wholesaler in October 2006.
It is understood that AIB has agreed to increase the amount of the senior revolving credit facility, which formed part of the €312 million debt package advanced by the bank to Triode Investments, a vehicle used by the management team to acquire BWG.
The wholesaler is controlled by BWG chief executive Leo Crawford, director John Clohisy and finance chief John O'Donnell.
The revolving credit facility has been converted into an "uncommitted facility" and its terms amended to allow it fund "future acquisitions". The repayment schedule has also been altered.
BWG's backers are believed to have repaid about €50 million of the sum they borrowed from AIB in 2006. This was achieved through the generation of strong cash flows from its trading activities and the disposal of property assets, including the Egan's cash and carry site in Dublin for €23.5 million.
These loans are separate to a €200 million credit facility secured with AIB by Newhill, a wholly-owned subsidiary of Triode, for the purpose of expanding its chain of Spar and Mace convenience stores.
Last May, Mr Crawford told The Irish Timesit planned to add 100 new Spar stores to its network by 2010. He said the funds would be used to help retailers purchase sites or leases to operate shops.
BWG has annual turnover of more than €1.2 billion and operates a network of more than 900 convenience stores in Ireland and the UK under the Mace, EuroSpar, Spar, and XL Stop & Shop brands.
BWG's takeover of Mangans is subject to the approval of the Competition Authority, which is expected in early summer.
Mangans has annual turnover of €195 million, employs 250 workers and supplies about 225 independent retailers.
