Once famous for its world-class cashews, Dan-D Foods has expanded into new and complementary markets over time. The company now deals in a broad range of healthy snack and natural foods including nuts, rice, fruits and spices.
When the opportunity arose for Dan-D Foods to purchase its production, warehouse and head office facility, management knew they had to seize the opportunity. To help fund the purchase of the multi-million dollar property, Dan-D Foods sought out the expertise and funding of the First West Capital team.
Founded in British Columbia, Dan-D Foods’ is based in Richmond, B.C. Over the years, the company has expanded into markets around the globe, and now has operations in the United States, Vietnam, Thailand, China and Taiwan. As Louis Cheng, financial controller at Dan-D Foods, shares, the company had been looking into purchasing its manufacturing facility for some time. When the previous property owner was finally ready to sell, Cheng knew they had to act quickly. “We got in touch with our bank who then referred us to First West Capital right away. The tricky part was that, although we wanted to buy our premises, we didn’t want to liquidate our other assets to do so, and the team at First West Capital understood that and was willing to work with us to come up with an alternate solution.”
The tricky part was that, although we wanted to buy our premises, we didn’t want to liquidate our other assets to do so, and the team at First West Capital understood that and was willing to work with us to come up with an alternate solution.
Cheng continues, “After we received the funding details from First West Capital, we actually did a market check with another lender and found that First West Capital’s was deal more cost-effective. First West Capital was also able to finalize the deal without requiring our founder, Dan On, to come back from working at our operations overseas.”
Kristi Miller, vice-president of First West Capital, was more than happy to help. “I’m a runner and hiker, and my entire family is active. As such, we have enjoyed Dan-D Foods’ products for years, and I was so excited when the company approached us for help in buying its Richmond warehouse. We worked closely with management and their bank to make the process as smooth as possible. Our structure and rate were competitive, we minimized disruption to the business, the founder was not required to return to Vancouver for due diligence or closing, and we had all necessary approvals in place very quickly. Dan-D Foods is an iconic BC brand and we feel privileged to have been asked to assist with this financing project.”
“We believe there’s great growth potential for our company and we’re looking forward to working with First West Capital to realize this potential,” adds Cheng. “We’ve really enjoyed working with Kristi and the First West Capital team as we’ve found them to be professional, reliable and knowledgeable throughout the funding process. Not only that, but they took the time to get to know our business to come up with a flexible solution that worked for us.”
Dan?D Foods sells its products to consumers through grocery stores, convenience stores and drug stores across Western Canada. The company has 1,800 accounts representing approximately 1,250 stores including large national chains like Loblaws, Thrifty Foods and London Drugs, as well as medium-sized stores like Nesters and IGA as well as small ‘mom & pop’ shops.