Cold storage giant heats up finances to aid further expansion
David Burgess, with Nick Vessey, and the Scunthorpe operations of Rick Bestwick, the trading name of Magnavale Group.
By Scunthorpe Telegraph | Posted: 30 Jan 2019
A rapidly growing cold storage business that launched in Scunthorpe has agreed a funding package to help finance further expansion.
Magnavale Group, which trades as Rick Bestwick, has increased sales by 35 per cent, with further plans for growth over the next three years to ensure that the current trajectory continues.
It offers multi-temperature storage as well as blast freezing, microwave and rapid air up tempering, as well as a range of distribution and added value services to the food sector.
Founder and co-owner Stuart Hancock started the business on Celsius Parc, Foxhills Industrial Estate as Via Coldstores, having bought out Innovate Logistics’ former premises, uniting with property developer Stephen Lawrence in 2013 to form Magnavale. Further acquisitions followed, including that of Rick Bestwick, and some of Yearsley’s portfolio, itself sold to American owners late last year, to give a further presence in Chesterfield, Warrington and Liverpool.
The significant growth vision for the company is now supported by facilities provided by Yorkshire Bank.
Nick Vessey, Magnavale Group finance director, said: “We are pleased to announce that after a long search and consultation period we have signed with Yorkshire Bank as our new funding partner. We needed a partner that could provide the backing we need to scale our business to the next level and provide the funding to develop ambitious projects that are already in the pipeline.”
The company enjoys a long term logistics partnership with Grimsby and Immingham shipping and transport operator DFDS, and recently doubled its blast freezing capability. Further investment in Scunthorpe has also been hinted at.
Colin Taylor, Rick Bestwick chief executive, added: “Yorkshire Bank have stepped in to provide the level of service we need to grow, and their backing is a vote of confidence in us, our business and our vision.
“We look forward to starting 2019 together and embarking on an exciting period of development for the business.”
It comes as storage is currently at a premium with big food brands understood to be stockpiling raw materials, ingredients and finished product to cope with any disruption a potential hard Brexit could bring.
David Burgess, director for business development, SME cashflow lending, corporate and structured lending at Yorkshire Bank, said: “We are delighted to support this long-established group who are providing excellent service to their clients, and this is behind the growth that the company is enjoying.
“There is a very strong management team at Rick Bestwick and we firmly believe that they have the knowledge to continue to grow the business successfully.”
Chris Huntington, director of asset based lending and working capital solutions, added: “We are pleased to be able to provide the funding platform for Magnavale Group to achieve their next phase of growth and we look forward to continuing to work with the management team.”