Arbuthnot Commercial ABL delivers £8.5m lending solution to support acquisition

10-Jul-2019

Arbuthnot Commercial ABL has structured and delivered an £8.5m asset based lending solution to support NVM Private Equity’s acquisition of full service, design-led EMS provider, Chemigraphic Limited.

Operating from a purpose built office and factory complex in West Sussex, Chemigraphic’s manufacturing service enables its customers to simplify their supply chains for electronic components and sub-assemblies by outsourcing the manufacturing process, reducing a product’s time to market.

The comprehensive funding facility, which comprises revolving receivables and inventory financing lines plus a cashflow loan, will generate additional liquidity headroom for Chemigraphic as it builds on its strategy to scale and broaden the business on a global basis, leveraging the company’s reputation for delivering mission critical parts on time and on budget.

Typically for Arbuthnot Commercial ABL, this was a complex debt structure for a private equity-backed borrower, delivered to a short timeframe.

Peter Hodson, investment partner at NVM Private Equity LLP, who led the transaction, said:

“Following the acquisition, Chemigraphic is well positioned to capitalise on future opportunities domestically and internationally. We are delighted to work with Arbuthnot Commercial ABL to support the management team’s exciting plans for growth.

“We were specifically looking for a lender that could provide the maximum level of funding to match the anticipated growth of the business based on the security of the current assets, something that the existing high-street bank provider found to be a stretch.

“Arbuthnot Commercial ABL stood out in terms of their flexibility in appraising and providing additional funding against stock, including components and work in progress. They showed a realistic, can-do attitude to delivering the transaction and were able to generate the value required. The facility will enable the business to build up working capital to support its growth, in addition to creating further headroom to complete future acquisitions.”