Home > Australian soap manufacturing Pental receives $15m financing facility

Australian soap manufacturing Pental receives $15m financing facility


GE Capital today announced that it had provided Pental, Australia’s largest soap manufacturer with a $15 million financing facility.

The deal will aid Pental brand expansion through product innovation, new sales channel development and private label manufacturing for major retailers, GE says.

GE Capital A&NZ managing director, corporate finance, Paul McCann said: “It’s great to see an Australian mid-market manufacturing firm restructuring for growth.

“We understand the challenges faced by manufacturing firms and the importance of looking beyond standard cash flow approaches. By utilising an asset-based lending approach, we have been able to provide a flexible and tailored working capital solution designed to support Pental’s growth agenda,” McCann said.

GE Capital’s recent Mid-Market Pulse Update,which surveyed 5,000 mid-market CFOs on their top priorities and concerns, showed that despite a weakening Australian dollar, manufacturing still faced a low growth outlook.

With increasing energy prices putting pressure on Australian manufacturing, the current economic environment and managing costs were identified as the top business concerns by most mid-market CFOs.

The Pulse Update also indicated that much of the forecast growth for manufacturing would be in the eastern states such as Victoria and Tasmania, where Pental’s is focusing on new growth for its Victorian-based operations.

Pental CEO, Alan Fisher, said “the investment we’re making in our brands and our distribution channels is a critical part of our strategy. Securing long term, committed funding with the flexibility to grow in line with the business was key.

 “GE Capital’s funding solution allowed us to leverage existing balance sheet assets to support our growth,” Fisher said.

Pental recently undertook a strategic review of its business as part of its focus on reclaiming supermarket shelf space for its iconic consumer brands.This has resulted in a change in management, the closure of its loss-making Oleo division, an equity raising and improved profitability of its core products.

Newsletter sign-up

The latest products and news delivered to your inbox