26 October 2007

New acquisition makes fireplace group hot stuff

King UK Limited, the country's leading distributor of non-food products to the licensed trade and catering sectors, has been acquired by the Manchester-based private vehicle, Casper Limited, in a deal backed by Enterprise Finance Europe (EFE).

Charlton & Jenrick, one of the UK's leading manufacturers of gas and electric fires, has acquired the Manchester-based fireplace company Fireline UK in a deal backed by asset based lender Enterprise Finance Europe (EFE) which is backed by the Bank of Ireland Group.

This latest transaction follows Charlton & Jenrick's acquisition of Katell, a Durham-based manufacturer of wood fireplaces in 2002. It makes the group a major player in the fireplace industry with national coverage of all key sectors, and puts it on course to reach a turnover of £13 million in 2008. EFE provided £4 million funding to support the deal.

Established in 1997 by James and Viktoria Lyons, Fireline UK operates from a 33,000 sq ft warehouse in Irlam, Manchester. It supplies high quality stone, marble and cast iron fireplaces, and fireplace products to a range of retailers, mainly in the North West, the South and Ireland. Fireline imports the majority of its products from China and Portugal through exclusive UK supply agreements.

Charlton and Jenrick, based in Telford, was formed in 1986 by Bill Jenrick and Barry Charlton and is one of the largest gas and electric fire suppliers in the UK.

Bill Jenrick said: "The deal will create significant synergies and whilst we have a very similar customer base, there is currently very little overlap in the two companies' product offerings. It means we can now provide a 'one-stop shop' offering the complete range of finished products. This makes it easier for retailers to buy from us and allows us to target builders and the fast-growing social housing market. It will also help Fireline to increase sales through our national sales force."

Peadar O'Reilly, director with Enterprise Finance Europe, added: "We were delighted to assist Bill Jenrick and his team at Charlton & Jenrick in acquiring this very successful stone fireplace business. The deal now allows the group to service customers throughout the UK and Ireland with a full range of quality fire and fireplace products. While we needed to provide a full range of asset based lending facilities together with a cashflow loan to relatively tight timescales, the quality of the deal, track record of management and the position of the new group made this a great transaction for all concerned."

Jeremy Carr and Nathalie Blake of Manchester accountants Ford Campbell, and Jamie Lloyd of Nexus solicitors in Manchester advised the management team. Jonathan Edwards and Sara Levy of Hammonds in Manchester provided legal advice to Enterprise Finance Europe.

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.

Bank of Ireland UK Financial Services

Bank of Ireland UK Financial Services is one of the largest divisions within Bank of Ireland Group. It comprises three main business - Personal Lending UK, Business Banking UK and Consumer Financial Services.

For further information, please contact:

Sandra Grandison Bank of Ireland +44 (0)207 634 3477
Tiffany Hardie-Evans Bank of Ireland +44 (0)117 943 7136
Samantha Dabbs Dabbs PR & Marketing +44 (0)1939 210503

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