Bank Club Deal Provides £150m For Genus Plc

Animal genetics business Genus has secured a £150 million funding package through a club deal involving the Manchester office of Yorkshire Bank.

Yorkshire Bank, Barclays, HSBC and Rabobank have joined forces to refinance Genus’s existing debt and provide additional funding to support Genus’ growth plans. Yorkshire Bank has agreed a £41m facility as part of the funding package.

Genus, a FTSE 250 company which is based in Basingstoke, Hampshire, is a world leader in applying science to animal breeding. Its products comprise semen and breeding animals with superior genetics to those animals currently in production. Genus sells in 70 countries under the trademarks ABS for dairy and beef cattle and PIC for pigs.

Genus’ products and services enable producers and farmers to enhance milk and meat quality and improve efficiency through the application of natural genetic selection, rather than genetically modified techniques. Animals produce offspring with greater production efficiency, milk and meat output and quality. In FYE June 2008 the company made an operating profit of £32m on sales of £247m.

John Worby, finance director with Genus plc, said: “We are delighted with the support we have received from Yorkshire Bank and other members of our bank group which has enabled us to establish the required facilities to support Genus’ exciting growth plans.”

Kevin Rimmer, director of Yorkshire Bank’s Corporate and Structured Finance team in Manchester, added: “Genus has been a client since the last round of funding three years ago. It is a highly successful and innovative company and we are delighted to continue to support its future development and increase our commitment at this time.

“Increasing world population and wealth is creating rising demand for food, particularly in emerging markets, while consumers worldwide are more willing to pay for meat or milk with a better taste or pedigree. By offering animals of a superior quality, Genus is in a unique position to benefit from these changing markets.”