Client: Kramp Group
Year: 2021 and 2022
Type of financing: (re)financing
After a successful collaboration in 2016 and 2018, Orchard Finance was again appointed by Kramp in mid-2021 as a financing advisor to support the family business with the refinancing for the renewed strategic plan.
Kramp Groep is a total supplier of parts for companies in the agriculture, garden & park sector and earthworks. Kramp is an international player with a strong growth ambition, both organically and through an acquisition strategy.
The family business opened its doors in Varsseveld 70 years ago and has grown into one of the largest European suppliers in 2021. With 11 distribution centers and more than 3,000 employees, Kramp serves customers in 24 European countries. In order to optimally serve its end customers, Kramp works together with local partners who know the market well, speak the same language as the customer and have a good relationship with the customer. With its expertise, technical knowledge, solutions and services, Kramp contributes to the success of its customers.
‘’Orchard has guided Kramp in a very professional manner in both processes, during each phase of the process. Thanks to their extensive market knowledge, an end product with improved conditions has been created for Kramp. In addition, it is very pleasant to work with Orchard, because they also have a personal approach in addition to a customer-oriented approach.’’
- Klaas Doets, Finance Director Kramp Groep
The bank credit facility expiring in 2022 no longer fully matched Kramp's financially robust position and vision for the future. Together with Kramp, we looked at the new financing requirement, the required flexibility and the conditions needed to be able to implement the strategy. Subsequently, Orchard helped Kramp draft the financing request for seven (potential) financiers and then guided the entire process up to closing. The financing has been prepared so that Kramp's ESG objectives can be added and linked to the commercial conditions of the financing. The new financing, based on the existing documentation, offers Kramp more flexibility than the former facility and also on more favorable terms.
The transaction was completed on schedule in December 2021. Subsequently, Orchard Finance assisted Kramp in expanding and extending the existing receivables securitization program and at the same time made that program STS-proof. This transaction was completed in May 2022. With this renewed financing, Kramp is able to continue to grow in accordance with its ambition and strategic plan, while there is also sufficient room for acquisitions.
‘’Orchard strives for a long-term relationship with its clients. We are therefore very pleased with our relationship with Kramp, for which we have been able to act as a financing advisor since 2016. For a strong player like Kramp, there is a lot of interest in the banking market. If banks are approached in the right way, they are happy to offer tailor-made solutions that meet Kramp's wishes’’.
- Eric Dolmans, Senior Associate Orchard Finance