Medica set for further growth with support of £10.4m funding package from Shawbrook

Specialist SME lender Shawbrook Bank has provided funding support as part of a recapitalisation with a solution made up of working capital, asset finance and cashflow loan for Medica Packaging to expand its facilities and meet its ambitious growth plans.

Based in Crewe, Medica Packaging specialises in the design and manufacture of cartons, patient leaflets and labels for the pharmaceutical, healthcare and related markets. Originally set up in 1922 as part of the Wellcome Trust, the business was then acquired in 2014 by Sullivan Street Partners, a private equity firm that has supported the manufacturer to become one of the UK’s leading producers of quality products and services in this highly competitive sector.

Over the last two years, Medica has experienced dramatic revenue growth and invested simultaneously in state-of-the-art machinery. However, aiming to increase efficiencies in production further still and accommodate its next phase of growth, Medica Packaging was looking for a funder that understood the sector and could provide a solution with speed and flexibility. The business had previously worked with Shawbrook and once again approached the team at the Manchester office. The Shawbrook team in Manchester led by Simon Carrier structured a facility to provide both ongoing working capital and additional headroom to support the planned expansion.

Shawbrook was advised by Bermans.

Layton Tamberlin, director at Sullivan Street Partners says:

“Medica has a strong heritage in pharmaceutical packaging and remains a key player in this sector due to its belief in delivering quality and service for its clients. The team is focused on making further improvements and growing their sales and needed to work with a funder who could craft a solution to suit. Simon and the Shawbrook team understood the industry and moved quickly to deliver a flexible solution that met our requirements.”

Simon Carrier, regional managing director, North West at Shawbrook says:

“It has been an absolute pleasure to work with Layton and Oliver at Sullivan Street and the team at Medica again. We were at an advantage when initially contacted about the transaction as we knew the business first hand and could swiftly prepare a bespoke solution that will facilitate their growth plans. We look forward to seeing the team at Medica continue to unpack the full potential of this business.”