17 January 2007

ALL LIT UP
Enterprise Finance Europe and Bank of Ireland back UK’s fastest growing gas fire manufacturer

CFM Europe, a leading UK manufacturer of high quality gas and electric fires, has been bought by Michael Miller, the company’s managing director from its Canadian parent company CFM Corporation with backing from asset based lender Enterprise Finance Europe (EFE) and Bank of Ireland.

left to right Peadar O'Reilly (EFE), Simon Carrier (BOI) and Michael Miller (MD of CFM)

Established in 1988, CFM employs over 100 staff at its modern, purpose-built premises on Gordon Banks Drive at Trentham Lakes North in Stoke-on-Trent and has annual sales of circa £13 million. The company has become the fastest-growing gas fire manufacturer in the UK and its three key consumer brands – Kinder, Flavel and Vermont – cover a large range of heating-related products.

CFM Corporation, a large Canadian manufacturer of home heating appliances, was itself the subject of a private equity-backed MBO in 2005.

Enterprise Finance Europe and Bank of Ireland provided an integrated finance package, combining a full asset based lending suite and commercial mortgage. They were introduced to the deal by Christian Mayo of KPMG Corporate Finance Manchester, which provided corporate finance advice.

Managing director Michael Miller said: “CFM has firmly established itself as a market leader in the UK and is recognised for the quality of design and innovation and reliability of our products. The deal will allow us to pursue continued growth in the UK and Europe and take the business to the next stage of its development.”

Peadar O’Reilly, director with EFE in Manchester, said: “EFE is delighted to be backing a very capable company with a great range of innovative products and brands and a clear strategic vision for the continued success of the business.”

Simon Carrier, director with Bank of Ireland in Manchester, added: “The deal had some interesting dynamics given its cross-border nature and was carried out within tight deadlines. The seamless completion of the transaction with our colleagues at EFE illustrates our combined commercial appetite and our ability to deliver in the market.”

Christian Mayo corporate finance partner with KPMG said: “This was a great deal for all parties concerned and we wish Mike all the best. The flexibility and responsiveness of EFE’s approach ensured a successful and timely completion and has provided a sound financing platform for the future growth of the business.”

Halliwells provided legal advice to EFE and Bank of Ireland while law firm Hacking Ashton and accountants Bentley Jennison advised Mike Miller.

ENDS
Notes to Editors

Enterprise Finance Europe operates as a pan European receivables finance provider, offering working capital funding to companies with turnover of between £2 million and £100 million. Supporting businesses during periods of growth, consolidation and turnaround, it is particularly focused on assisting businesses with transactions such as acquisitions, Management Buy-Outs/Buy-Ins and refinancing.

While the funding is primarily receivables-based, EFE offers innovative and flexible deal structuring, with access to stock and trade facilities.

Backed by the Bank of Ireland Group and with offices in London, Manchester, Leeds, Birmingham, Bristol, Southampton and Belfast, EFE is looking to exploit the gap in the market for a niche-player with strong expertise, who can bring local director-led service, pragmatic and quick decisions, innovative deal structuring solutions and substantial resources to a funding opportunity.

Bank of Ireland Business Banking UK

The Business Banking Division of Bank of Ireland has grown exponentially, following the recruitment of over 70 experienced bankers in the past year. There are teams based across the UK in London, Leeds, Manchester, Liverpool, Birmingham, the Thames Valley, Bristol, Belfast, Glasgow and Edinburgh.

These teams of experienced bankers, many of whom have moved from Bank of Ireland’s key competitors, are now actively seeking to offer between £1m and £200m in development and investment finance for commercial clients and for residential portfolios.

Bank of Ireland offers a full range of business banking services to rapidly growing niche markets, such as Property, Healthcare, Hotels & Leisure and Education. As well as providing development, investment and acquisition finance for businesses, Bank of Ireland offers specialist services, such as deposit-taking; client monies management; interest rate management, foreign exchange, debtor finance and asset finance.

As a relatively new entrant to the market, Bank of Ireland is able to respond to the needs of an increasingly sophisticated market that now demands fast decisions and flexible solutions, as well as competitive terms.

Bank of Ireland is one of Europe’s top performing financial services companies. Established in 1783 it now has over 17,000 staff and more than 400 branches throughout the UK and Ireland.

Press inquiries to: Sam Dabbs, Dabbs PR & Marketing on Tel: 01939 210503 or 07050 108985. Fax: 01939 210526. Email: sam@dabbsprm.com

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