Product category:
Manufacturing finance: production investment support
News Release from: GE Commercial Finance | Subject: Financing package
Edited by the Manufacturingtalk Editorial
Team on 14 April 2006
Multi-million pound package finances MBO
GE Commercial Finance's Business Finance unit has provided a multi million pound financing package to facilitate the management buy-out of UK-based Lymington Precision Engineers.
GE Commercial Finance's Business Finance unit today announced it had provided a multi million pound financing package to facilitate the management buy-out of Hampshire-based Lymington Precision Engineers (LPE) LPE, part of the Fullers Group, was founded in 1980 and is a leading manufacturer of precision-machined drilling components that are used by the major oil companies across the globe for oil exploration
This article was originally published on Manufacturingtalk on 16 Feb 2007 at 8.00am (UK)
Related stories
Successful MBO funded externally
Financial consultants advised and funded the management team of a UK precision turned parts manufacturer on its recent management buy-out of the company.
Finance support given to controls MBO
Pneumatic Lines, a leading provider of electronic and pneumatic control systems in the Midlands and East Anglia has completed a management buyout supported by GE Commercial Finance.
It also provides machined components, fabrications, assemblies and kit sets for the telecoms, defence, space, medical and marine industries across the globe.
The current owner, Leon Crouch is now handing over the reins of the company to the existing management team, while maintaining an interest in LPE.
Commenting on the deal, Andrew Rutherford, GE Commercial Finance, Business Finance director said: "This is a great deal - a successful, well-established company in a niche market, a strong management team, backed by a great workforce, and a clear vision.
Further reading
Successful refinancing deal secures stability
An GBP8 million refinancing deal has enabled a consistently profitable manufacturer of safety critical valves and fittings to redeem the entire acquisition finance from a venture capital firm.
Steel processor realises cost savings
US steel processor reported significant cost savings achieved through the Fabricators and Manufacturers Association working with Affiliated Power Purchasers International.
We worked closely with corporate finance specialists Peter Grinyer and Rosemary Penn-Newman of Fanshawe Lofts to set up this deal and without their close involvement, it would not have taken place." Rutherford said: "Succession planning is about finding the right exit strategy when you are ready to hand your business over to somebody else.
The task of finding and training a successor can be challenging for a business owner but it an essential element of a succession plan - and Leon Crouch has approached this with much thought and detail.
We look forward to supporting the MBO team in the continuing development and growth of the business." The financing package consists of invoice discounting, a plant and machinery facility and a cash flow loan, which has provided the management team with the means to complete the deal.
The management team was led by managing director Tony Chalk, and its new board also includes David Craig, Chris Fletcher-Jones, Joanne Caulkett, Martin Palmer and Rob Hiscock.
The success of LPE has been driven by the effective business relationships it has developed with a host of multi-national blue chip companies to deliver specialist engineering-based services.
This has been coupled with significant capital investment and the development of a highly skilled workforce.
"The buy-out of LPE from the Fullers Group has been a complex and fascinating project to advise on," commented Rosemary Penn-Newman of Fanshawe Lofts.
"It has required a large team of advisers to focus on providing a cohesive approach to making the deal happen and I'm delighted that we have achieved that so smoothly." Peter Grinyer, concluded: "LPE has a new management team which combines enormous experience and capability.
It is also retaining the support of Leon Crouch during this important next phase of its development and the opportunities for the businesses going forward are significant.".
• GE Commercial Finance: contact details and other news
• Email this article to a colleague
• Register for the free Manufacturingtalk email newsletter
• Manufacturingtalk Home Page
Search the Pro-Talk network of sites
