(Bloomberg) -- Baxters Food Group Ltd., the British maker of soups, condiments and preserves, is attempting to thrash out a deal with lenders ahead of a debt refinancing in the summer.
The company, owned by the same family for more than 150 years, has hired advisers from restructuring outfit Teneo to negotiate with banks including HSBC Holdings Plc. Baxters’ lenders, including HSBC, are being advised by FTI Consulting Inc., according to people familiar with the matter.
Founded in 1868 by George Baxter, the Edinburgh-based company produces tinned soups and chutneys which are sold across the UK through grocers including Tesco Plc, WM Morrison Supermarkets Ltd. and J Sainsbury Plc. In the US, it owns Wornick Foods, which supplies the US military with rations.
The company is led by Audrey Baxter and counts politician Ruth Davidson, former leader of the Scottish Conservative Party, as one of its board directors.
Baxters reported sales of £332.2 million ($399 million) for the 12 months to March 27, 2021, up from £308.6 million a year earlier. It reported a pretax profit of £23.2 million, up from £4.4 million.
Food manufacturers have been under pressure from the rising cost of raw materials and energy bills.
“We regularly review our advisers and suppliers across all areas of the business including our financial partners and advisers,” a spokeswoman for Baxters said, “in this case in relation to our planned routine refinancing.”
Representatives for FTI, Teneo and HSBC declined to comment.
(Updates with Teneo declining to comment in final paragraph.)
©2022 Bloomberg L.P.
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