On May 30, 2016, our client, Coöperatieve Nederlandse Champignonkwekersvereniging U.A. (“CNC” or the “Company”), has reached an agreement with a consortium of two banks to refinance its existing debt facilities, attracting additional senior funding to finance planned growth investments in Milsbeek.
CNC, through its operating company C4C Holding B.V., is the leading European supplier of substrates for mushroom cultivation, with on-ground presence in the two key European clusters of mushroom production (the Netherlands and Poland) and benefitting from an increasing international export position.
To ensure the continuity of the Company, CNC divested its mushroom processing activities and management adopted a strategy focused on the production of high quality substrates. To complete the strategic reorientation, the Company refinanced its existing debt facilities and attracted additional senior funding to finance planned growth investments.
Post transaction, CNC is ready to invest in self-sustaining production capacity in Milsbeek in the Netherlands, and has increased working capital headroom. In addition, the new financing package is structured in such a way that CNC is no longer exposed to foreign currency risk in non-euro countries.