TransactionFirePower provided Gap Debt financing to KOA Natural Foods

OUR ROLE

Capital — Private Debt

SECTOR

Consumers & Retail

OUR TEAM

Trevor Simpson
Michael D'Ercole

Overview

KOA Natural Foods sought new capital to take its innovative and promising brand and product lines to the next level. In FirePower Capital, KOA found not only a lender, but also a long-term partner that is fully aligned on the company’s growth objectives.

Challenge

KOA was considering various options to finance the next step of its growth. It investigated both debt and equity, and determined that debt best suited its plans. However, as a capital-intensive food business, KOA found that traditional lenders weren’t keen to dig deeper into the company beyond its balance sheet and understand the drivers of the brand’s value and its potential.

Solution

KOA discovered FirePower Capital, one of Canada’s leading mid-market lenders. From the outset, FirePower took time to ask the right questions and dug deep into KOA’s numbers, forecasts, customers, and goals to understand where the business was headed. Next, FirePower structured a tailor-made solution that fit with the business’ needs. FirePower moved quickly to get everything done and ensure KOA was adequately capitalized to reach its next growth milestone.

Results

KOA used the capital deployed by FirePower to invest in more inventory, hire new talent, and improve manufacturing. As a result, KOA anticipates 50 percent growth year-over-year—and continued growth thereafter. Most importantly, they have a trusted long-term partner supporting them as they gear up for future success.

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