Press Releases

07 July 2006

Enterprise Finance Europe strike it hot with four deals in seven days

The Manchester office of asset based lender, Enterprise Finance Europe (EFE) is enjoying deal success, completing four with an overall consideration of £10 million in just seven days.

Deal number one, led for EFE by director Peadar O'Reilly, is the acquisition by the newly formed Casper Group of Industrial Supplies Ltd, a distributor of cleaning and hygiene supplies which is based in the East Midlands, Peterborough and Ipswich.

 It is the first of a number of acquisitions the team are pursuing throughout the country. The chief executive officer leading the acquiring team, Christoph Sander was the CEO designate of Bunzl plc and left in 2006 after which he decided to pursue this opportunity.

Sander, during his time at Bunzl, completed in excess of 25 acquisitions over a 15 year period. He is being joined by David Wallwork who was director of Global Sourcing at Bunzl. Chairing the new Casper Group will be North West-based Peter Ward, who sold his own business to Bunzl in 1999. Ward had built up his company to a £120 million turnover before exiting.

"The MBI of IS is the first deal in a proposed buy and build strategy led by the management team," says EFE director Peadar O'Reilly. "ABL is ideally suited to back this extremely credible and impressive management team who will quickly be looking to make further strategic acquisitions."

Second is the backing of RD Precision Ltd (RDP). The company makes precision parts for the aerospace industry and is accredited by Airbus, BAe Systems and GKN. Founded by Ron Daly and Richard Doyle in the late 1980's and based in Queensferry in Flintshire, RDP has this year acquired a precision engineering business based on the Isle of Wight and has further increased production capability by establishing a base in Poland.

The EFE package involving funding against debtors and stock will assist RDP in their continued expansion. EFE's Jeremy Smith, who heads up EFE in the North and Midlands adds: "RDP is a profitable and well managed business and we're delighted to be backing them in their next stage of development."

Next is the MBI of Dublin-based company Scapa Tapes Ireland, a manufacturer and distributor of industrial tapes and adhesives. Originally set up in 1973, Scapa Tapes was owned by Sellotape plc which disposed of the company in 2000 to Scapa Group plc.

The deal has been led by seasoned North West businessman Declan McKenna who also acquired Crewe-based Swallow Tapes earlier this year. The deal will see the company expand its distribution capabilities throughout Ireland and is well placed for future growth given McKenna's expertise in the tape and packaging sector.

Last but no means least is England-Worthside Limited which is another company based out of the area that has been attracted to EFE and ABL. Located in Keighley, West Yorkshire, England-Worthside supplies equipment to, and manages the supply chain logistics for brewers and other beverage dispense companies.

Established in 1977, as part of Hopkinsons Holdings plc, the company was principally involved in the supply of beer pumps and other drinks dispense equipment.

In 1994 Trevor Hicks led an MBO which bought the company in a deal backed by 3i and funded by Co-op Bank. Over the past six years the company has developed bespoke equipment supply solutions and services under its Equipment Supply Partnership brand.

EFE has provided facilities for the company for over three of those years. England-Worthside's Trevor Hicks says: "EFE have already been great partners in supporting our rapid growth, and the securing of major accounts that include Heineken, Wolverhampton & Dudley Brands and several regional brewers.

"This new funding package provided by EFE, will see 3i and Co-Op Bank exit the business and is key to our plans to develop the business even further ensuring a prime position in its market."

EFE's Smith concludes: "It's a very busy period for EFE and we have a healthy pipeline of new transactions to follow on behind these recently completed deals.

The attractiveness of ABL is clear-cut: using all the assets on a balance sheet - debtors, stock, plant, machinery and property - to structure deals means management can retain both equity and overall control of the business. "

The revolving nature of a large proportion of the funding package allows businesses to be geared up safely without the strain on cashflow of an onerous debt repayment profile. Meanwhile, transactions can be done quickly and cost effectively."

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