FGI_Sawgrass

Sawgrass

“FGI provided us with a financing solution for both our US and UK companies, as well as our export receivables. Not only were they able to move quickly, but the $5 million ABL facility they provided us with offered increased availability and fewer covenants than the solution we had with our previous lender.”

– Keith Beasley,
CFO, Sawgrass Inc.

Introduction

For 29 years, Sawgrass has been a pioneer and leader in the industrial digital printing industry for personalized decoration of products made with textile, ceramic, wood, glass and metal. The company sells printing systems in a strategic partnership with Ricoh Corporation, a $20 billion Japanese multinational imaging and electronics company.

Sawgrass manufactures specialized ink cartridges and private label printers co-developed with Ricoh. These print systems serve the needs of nearly any size business, from home-based businesses with desktop capabilities to retail and factory-scale production. Headquartered in the US, and with additional offices in Sheffield, England, Sawgrass supplies an extensive global dealer network that services more than 100 countries throughout North and South America, Europe, Africa, Australia, and Asia.

Situation

Sawgrass restructured its partnership with Ricoh in 2016, which led to the need for a new lender that could provide a comprehensive financing solution for its global distribution requirement. Additionally, the company sought to leverage their cross border A/R which were rapidly growing due to the success of their international expansion. The existing debt facility was constraining growth which required the company to move quickly to find a new financial partner.

Solution

Working within a tight deadline to ensure Sawgrass’ incumbent bank was seamlessly paid off, FGI devised a plan that would provide the company with the financing they required to fuel their growth while addressing some of the complexities stemming from existing supplier arrangements.

Within a very short period of time, FGI presented Sawgrass with a one-stop solution to finance both their US and UK companies, as well as their cross-border receivables. They provided Sawgrass with $5 million ABL facility against A/R and inventory in the US and UK, affording the company with more availability than they had with their previous lender, and with fewer covenants.