EDC Loan Guarantee helps BCI Foods set its table for growth
The people at EDC…don’t have a one-size, cookie-cutter answer for everybody; they listen to you and understand that each company has its own reality. So, for us, when making those decisions to acquire more equipment, it was very reassuring to have a financial partner, like EDC, to accelerate our growth.
One of BCI’s most important objectives was to diversify its client base beyond Canada.
“We needed to expand beyond the Canadian market and find new opportunities to pursue our expansion,” says Cousineau. “Given our proximity to the U.S. market and similarities in consumption habits, our choice was fairly obvious. Americans spend over $7 billion buying soup annually.”
But first, BCI needed to increase its production capacity, and that meant getting the required capital to expand and modernize its soup-making and canning equipment. EDC was an obvious choice to assist BCI in putting together the right financial structure to support that growth.
One of the first things Cousineau noticed about working with EDC was a feeling of reassurance. “The people at EDC are exceedingly supportive. They don’t have a one-size, cookie-cutter answer for everybody; they listen to you and understand that each company has its own reality. So, for us, when making those decisions to acquire more equipment, it was very reassuring to have a financial partner, like EDC, to accelerate our growth.”
To ensure BCI could get the optimum amount of capital to scale up its production capacity, EDC worked with BCI’s bank, providing them with a guarantee for 50% of the required loan.
As we grow outside of Canada, we’re very thankful for EDC’s help, and their commercial flexibility in crafting the appropriate financial assistance.
Increasing appetite for growth with EDC
With the initial company expansion a success, BCI saw more new opportunities but needed to increase its production capacity and operational efficiency, including an additional dosage line waiting to be installed. These objectives would require additional financing, and the team also wanted to improve its overall debt facility.
“Since the acquisition, BCI’s shareholders have injected nearly $60 million into the company. They had the production tools, the dedicated management, the market, and they were very well controlled,” explains Karen Trujillo. “So, we worked with BCI’s new financial institution to support them in order to secure a larger line of credit and provided an additional guarantee on that.”
