Secure Trust Bank Commercial Finance has provided a £2.15m funding package to NJ Russel Holdings Group to support the acquisition of Prima Electronics, a contract electronic manufacturer.
The Cambridgeshire-based business offers a wide range of electronic manufacturing services, including printed circuit board assembly and surface mount assembly. Prima Electronics manufacture bespoke electronic components and circuit boards, which small businesses can purchase through Prima without having to pay for in-house equipment.
The funding line provided by Secure Trust Bank Commercial Finance consists of invoice discounting, stock and plant and machinery lines. The £2.15m sum will primarily be used to fund the acquisition, but will also boost cashflow.
The two incumbent directors at Prima Electronics, Tony Hall and Mike Rogers have sold their stake in the business to Nick Russel, who will be heading up the business as chairman. Tony Hall will remain within the business as managing director.
Nick Russel, Chairman at Prima Electronics, said: “Prima Electronics is a fantastic business with great prospects for the future. Cambridge is widely known as a hub for tech start-up businesses, most of which will not have the capabilities to produce the electronic components needed to develop products. The plan now is to build on the solid foundations laid by the directors, and expand its services to all areas of the UK.
“Secure Trust Bank Commercial Finance made an excellent partner in this transaction. Working with a lender that has a long-term view was essential, and Secure Trust Bank offered a facility that can be flexible and grow in-line with the business. We look forward to continuing our work with the team as we strive for Prima’s national expansion.”
Tony Young, regional sales director at Secure Trust Bank Commercial Finance, said: “We were keen to support Nick’s ambition to develop Prima Electronics into a manufacturing business that can support businesses across the country. The company is currently in an excellent position given its reputation with local businesses and its capability to scale up, and we look forward to seeing its progression over the coming years.”