FGI Provides $30MM ABL Facility for Ahern Seeds
“Ahern Seeds is overly impressed with FGI’s support and dedication to bringing this deal to a successful close. Throughout the process, they have remained flexible and accommodating to all the intricacies we faced. I am appreciative of their support and look forward to a long and healthy partnership.”
“We were very pleased to work with FGI on a transaction for a client based in Mexico. Their team was very thoughtful, providing a high degree of ingenuity and flexibility in structuring the transaction. We were impressed by their deep knowledge of the financial landscape in Mexico and grateful for their assistance with this complex transaction.”
Headquartered in San Diego, California with regional locations in the US and Mexico, Ahern Seeds is a wholesale distributor of fruit and vegetable seed varieties. For over 40 years, Ahern has been serving manufacturers, large commercial farmers, and independent growers of agricultural goods with their product offerings throughout the US, Mexico, and Central America.
In 2020, Ahern was acquired by Tene Investments Funds, an Israeli-based private equity group with an impressive track record in the agricultural sector. After the acquisition, Tene worked with advisory firm Oberon Securities to acquire the necessary financing to achieve their growth goals. The most imperative component of the deal was finding the right lender who would be able to navigate the international complexities of the transaction. Oberon introduced FGI to provide a financing solution, given the firm’s track record of providing comprehensive solutions in cross-border transactions.
As the majority of Ahern’s collateral was located within Mexico, they required a lender who could operate in the region. The company needed a new credit facility that could leverage their collateral in Mexico, consolidate their existing debt, and support their growth under new ownership, so they could pursue their acquisition strategy.
In the end, only FGI could provide Ahern with the structure they needed by lending against receivables and inventory in both the US and Mexico. Additionally, FGI’s added ability to be flexible and creative in navigating the transaction was pivotal to a successful closing.
