HSBC is providing €50m of the funding with ABN AMRO responsible for the remaining €30m.
STIGA/GGP, which is based in Italy, supplies lawnmowers and other garden machinery to dealers, garden centres and retail chains through its brands such as Stiga, Mountfield and Alpina and to leading Original Equipment Manufacturer (OEM) customers. The business sells its products in all European markets with subsidiaries in all the major garden markets including the UK, Germany, France, Italy, Sweden, as well as in more than 70 countries worldwide.
The deal, which was led by HSBC, enables STIGA/GGP to raise finance in the UK, Italy, Germany, France and Sweden under a single umbrella agreement rather than creating five separate local arrangements.
As a business with a seasonal trade cycle, the facilities allow GGP to smooth its cashflow by efficiently generating working capital from invoices to fund its growth.
Andrew Betts, HSBC’s Head of Global Trade and Receivables Finance, Europe, said: "Using our international experience and expertise in receivables finance, we worked closely with GGP’s management team to create an innovative pan-European funding package which will power the business’s growth across new and existing markets."
Georg Metz, CEO of GGP explained: "This deal provides us with a simple solution to the complex task of securing finance across five countries. It builds on our recent strong performance, and is a milestone for our business which will help us realise our growth plans. In particular, it will enable us to focus on the development of a new generation of garden machinery, including the latest battery powered technology and IoT based garden equipment."
Jonathan Parfitt, Director Origination International Clients for ABN AMRO, added: "Our expanding international team were delighted to partner with HSBC in supporting STIGA’S/GGP’s growth and lend our long-standing experience in providing cross-border finance across multiple European markets to this transaction."
STIGA/GGP employs over 1,550 staff and reports sales above €480M.