Leumi ABL Client Case study - CPS

October 2017

Leumi ABL has provided a £5 million ABL facility to support the growth of Private Equity backed Cash Processing Solutions, ‘CPS’. The facility provides flexible funding to meet worldwide demand for the high quality, high specification range of cash processing machines manufactured by CPS.

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CPS

Leumi ABL Client Case study - CPS

October 2017

Acquired by Privet Capital from De La Rue plc as a non-core operation in March 2016, CPS is one of the market leaders providing world-class cash processing hardware, software and related services to central banks, commercial banks, state printworks and commercial cash processing companies. Its solutions play a critical role in managing cash throughout its lifecycle from manufacture through to issuance, circulation, processing and destruction. These complex sorting solutions process over 100 billion banknotes per annum from operations in 106 countries, supported by a team of over 500 people.

Andrew Crawshaw, CFO of CPS, said: “We are delighted to have secured this funding from Leumi ABL to support our growth ambitions. Leumi have taken the time to understand the nuances of our business and we look forward to building a very successful working relationship.”

Ian Slater, Partner at Privet Capital, said: “We approached Leumi due to their understanding of our specific plans and requirements and ability to structure business-appropriate financing packages. Leumi has delivered a funding solution which will provide essential flexibility and support for CPS’s growth ambitions.”

Martin Risman, Leumi ABL Regional Sales Director, commented: “CPS is an exciting, well established business with a world-class product and customer base and a stand-out global growth plan. We are delighted to be involved in supporting the business in the next stage of its journey.”

Privet Capital were advised on the transaction by Fladgate and Leumi ABL were advised by Squire Patton Boggs.

Past Client Case Studies

Stemcor

Stemcor

May 2017

Leumi ABL is pleased to announce that it has supported the MBO of two businesses, Steel Plate & Sections Limited and Stemcor Special Steels Limited from their holding company group.

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Stemcor

Stemcor

May 2017

Leumi ABL supports MBO of Steel Products business with multi-ABL facility

Leumi ABL is pleased to announce that it has supported the MBO of two businesses, Steel Plate & Sections Limited and Stemcor Special Steels Limited from their holding company group. The management team was supported with investment from Breal Capital affiliates and secondary funding from Breal Zeta Limited.

Steel Plate & Sections and Stemcor Special Steels both sell speciality steel products to customers in the oil and gas sectors.

Leumi ABL provided finance to support the acquisition with an aggregate facility of £14.5m, comprising a £9m CID facility, £4.5m inventory facility and a £1m term loan.

Commenting on the deal, Brent Osborne of behalf of Breal Group said: “Leumi ABL’s proposal was attractive as it provided funding against all the business assets. Leumi worked with us to make sure completion was achieved in the required and challenging timeline, whilst really understanding the business.”

Robert Wakeford, Regional Sales Director at Leumi ABL said: “This is the second corporate carve out we have funded in April, and on both occasions it has been the certainty of delivery against a deadline that has been critical to the success of the deal.”

Hilco Valuation Services undertook the Accounts Receivable field exam and inventory appraisal work. Gunnercooke advised the companies. Squire Patton Boggs advised Leumi.

Whitworths Ltd

Whitworths Ltd

August 2017

Leumi ABL has recently completed the £19m refinance of leading brand Whitworths Ltd on full Asset Based Lending facilities including CID, Stock and Term Loan.

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Whitworths Ltd

Whitworths Ltd

August 2017

Leumi cracks dried fruit and nuts refinance

Leumi ABL has recently completed the £19m refinance of leading brand Whitworths Ltd on full Asset Based Lending facilities including CID, Stock and Term Loan.

The facility provides funding for investment in new plant, marketing, innovation and overseas expansion, in support of Whitworths’ long term plans for growth.

Mark Fairweather – CEO of Whitworths said: “The merger between Anatolia and Whitworths in May 2017 created the opportunity to invest in the growth of the Whitworths brands both in the UK and internationally, as well as investing in the appropriate packing facilities to meet the long term needs of our key retail customers and their brands.

“This funding provides Whitworths with the ability to build on its unique position in the market delivering supply chain integrity from producer to consumer on key areas of dried fruit. This is an exciting opportunity for Whitworths and one that will bring long term benefits to our consumers, customers and suppliers.”

Jason Holland, Regional Sales Director (Midlands) of Leumi ABL said: “We are delighted to support the leading name in dried fruit, nuts and seeds, in both own brand and private label markets. Management have a strong vision and are making great steps fulfilling customers’ requirements in both product range and service delivery. This can only enhance Whitworths’ reputation as the leading brand. Our comprehensive asset based lending facilities provide Whitworths with capital for growth and investment.”

Go Interiors

Go Interiors

May 2017

Leumi ABL is pleased to have provided funding to support the acquisition of Birmingham based FGF, by Go Interiors, the largest independent specialist distributor in the construction interior sector.

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Go Interiors

Go Interiors

May 2017

Leumi ABL supports growth of a £65m turnover building products Group

Leumi ABL is pleased to have provided funding to support the acquisition of Birmingham based FGF, by Go Interiors, the largest independent specialist distributor in the construction interior sector.

Founded in 2001, £35m turnover Go Interiors, headquartered in Hemel Hempstead, distributes dry lining, suspended ceiling, partitions and insulation systems. The business has featured in the Times Fast Track 100 and UK Hot 100, having built a strong reputation in the industry for its expertise and the benchmark-setting standard of customer service.

FGF, a family-run £25m+ turnover business founded in 1954, specialises in decorative cladding and facades, cutting, re-manufacturing and industrial insulation solutions. Over the last seven years, the business has restructured, supported by Leumi ABL, and has progressed well to a profitable position.

The acquisition offers the opportunity for both organisations to reach new markets and customers will benefit from a unique offering of products and services.

Commenting on the financing deal with Leumi ABL, Gerard Abbott-Drake, Director at Go Interiors, said: “Having spoken with a number of banks, the decision to go with Leumi ABL was an easy one. Their approach was simple and straightforward and the people making decisions had an entrepreneurial flair that was really refreshing. The team were extremely helpful and made the completion of the deal as uncomplicated as possible. I wouldn’t hesitate to recommend them.”

Misco

Misco

April 2017

Leumi ABL has completed the financing of Misco UK Limited, one of the UK's leading suppliers of IT hardware, software and solutions to businesses and public sector organisations.

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Misco

Misco

April 2017

Leumi ABL supports business turnaround plan for leading UK IT supplier

Leumi ABL has completed the financing of Misco UK Limited, one of the UK’s leading suppliers of IT hardware, software and solutions to businesses and public sector organisations.

The MBI of Misco from US listed business, Systemax, supports a turnaround plan led by Hilco Capital. The deal focuses on the non-core part of Systemax that included its European operations in Italy, Sweden, Spain, Portugal and Hungary.

Hilco Capital are highly rated in the turnaround and restructuring industry and under Hilco’s ownership and a new management team, Misco will go through a transformation exercise to return the business to profitability.

Leumi ABL provided a £15m UK CID facility with the option to include further European facilities in the future.

Chris Emmott, Investment Director at Hilco, commented: “Leumi quickly gained an understanding of the transformation plan for the business and worked with us to deliver a working capital facility that allowed for a smooth transition under Hilco’s ownership.”

Robert Wakeford, Regional Sales Director at Leumi ABL said: “This was an excellent deal to be involved with, working with one of the most highly regarded turnaround houses. With the long term plan to support the whole of the European group’s finance requirements we were able to deliver a bespoke finance solution in a tight timeframe.”

Hider Food Imports

Hider Food Imports

January 2017

Leumi ABL completes £5.75m financing deal with Hider Food Imports Leumi ABL has supported one of the UK’s leading distributors of nuts and dried fruits, Hider Food Imports, with a multi-facility Asset Based Lending package.

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Hider Food Imports

Hider Food Imports

January 2017

Hider Food Imports is the leading distributor of fine foods to the independent retail sector and has recently won two industry awards, including being voted number one by retailers in their sector-leading magazine for the fifth year.The family-owned business has operated from its HQ in Hull since 1965 and continuing growth plans prompted the business to seek a new flexible Asset Based Lender who could support their working capital requirements in the short, medium and long-term. Leumi ABL provided a facility comprising of £5.75m invoice discounting, plant and machinery finance and a stock finance facility.Duncan Hider, Managing Director at Hider Food Imports, commented: “After looking at various traditional funding partners and new lenders on the market, we were enthused by a more old style banking approach to lending. We use the term ‘old style’ in a positive way: not decision makers hiding behind relationship directors, but human beings with whom we could meet and who followed through on their verbal commitments.

“Receiving good recommendations from our trusted network about Leumi’s ability to deliver the finance required was very important to us. Throughout the process my fellow director and I received regular progress updates, whether it be positive or negative. Communication from Leumi ABL was strong, with face-to-face conversations backed up by phone and email. When we encountered challenges, solutions were explored quickly, and the information requested from us was standard information that was easily put together.

“Everyone we dealt with at Leumi ABL seemed to be aware of our requirements and helped to make the process as straightforward as possible. Yes, there were hiccups, and yes, things took longer than planned, but each barrier and delay was communicated well, and solutions worked on from both sides. There seemed to be a real team spirit within Leumi ABL and this gave us reassurance. We got the sense that decisions were made more quickly without long chains of management and approvals, taking into consideration discussions as well as numbers to really understand the business.

“In terms of fees, we had sensible discussions; Leumi ABL didn’t simply tell us what the cost was, they talked us through the proposals and listened and responded to our concerns. Their approach to us always came across positively, and very quickly we felt at ease to discuss issues openly. They viewed our business, our assets and then worked on a facility that fitted our requirements, without onerous covenants with a straightforward open approach, letting us concentrate on running the business.”

John Walsh, Leumi ABL Regional Sales Director in the North East & Yorkshire, comments: “We had a clear mandate on what was required and with the help of Hider’s professional team, we were able to structure the facility and demonstrate our refreshing approach, flexibility and timely response yet again enabling us to be the favoured funding partner.”

Quba Solutions Ltd

Quba Solutions Ltd

November 2016

Leumi ABL is pleased to announce that it has added another recruitment business to its client portfolio with a deal completed for Dorset based Quba Solutions Ltd.

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Quba Solutions Ltd

Quba Solutions Ltd

November 2016

Leumi ABL completes funding deal with recruitment back office specialist, Quba Solutions Ltd

Leumi ABL is pleased to announce that it has added another recruitment business to its client portfolio with a deal completed for Dorset based Quba Solutions Ltd.

Quba is a recruitment services business that operates a complete back office for recruitment agencies. Quba has invested significant time and money into their unique online dashboard system, this includes the creation and authorisation of timesheets online, automated invoicing, credit management and finance that enables its agency clients to run and grow their successful recruitment business.

Quba’s rapid growth and significant future pipeline called for additional funding to meet its requirements. Leumi ABL, with its proven experience of the recruitment sector, was well placed to assist with a £4M confidential invoice discounting facility. This was a slightly unusual facility as Quba actually finances the recruitment companies, so requiring a back to back facility.

In seeking a new financing provider Quba had spoken to others, but from an early stage it became clear that they would choose Leumi ABL if the offer was right. During the early part of the sales process, Leumi ABL was pleased to welcome the Quba shareholders on a visit to their Brighton head office, this enabled them to meet their future client manager and the Leumi directors.

Ashley Lyas, Director at Quba Solutions, said: “We already run a successful business for contractors and agencies, ensuring they are legally compliant. We started Quba using our sector knowledge and software that we developed to extend services for temporary recruiters, enabling them to focus on their customers. This process allows them to spend more time on business development and subsequent fee generating activities rather than back office administration.”

Paul Tonks, Quba’s Finance Director, added: “We started the business, confident of picking up a number of clients quickly, and financing this internally. Business has really taken off, and we became concerned about stretching our resources so accelerated a search for a finance provider to partner with. The facility with Leumi ABL solves that problem, by growing with us. The initial limit will allow us to treble our business before we need to ask for a review.

“Leumi ABL took the time to understand our business, introducing us to our client manager before they had even done the due diligence, to make sure we knew what they expected of us, and what we would get from them. That way, we were able to feel comfortable with Leumi ABL early on, and ensure that there will be no surprises!”

The deal was introduced by the client’s auditors, RSM. Advisers involved in the deal were RSM and Addleshaw Goddard.

Red Commerce

Red Commerce

September 2016

Leumi ABL completes £25m cross border ABL facility to support growing international recruitment business. Leumi ABL has completed a £25m facility for Red Commerce, a private equity owned international recruitment business.

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Red Commerce

Red Commerce

September 2016

With its global headquarters in London, Red Commerce operates from eight offices in the UK, Germany, Switzerland, US and Brazil, supplying SAP consultants globally to meet the requirements of businesses seeking full-time staff or contingent staff.

Staff operating the specialist IT software system, SAP, are highly skilled and command high rates of pay, with an average of £500 per day being paid to them. This creates a large working capital requirement.

When Red Commerce’s high street bank failed to have the appetite to support its growth plans outside of the UK, Leumi ABL was able to step in and set up facilities in the UK, US, Germany and Switzerland. The package comprises of invoice discounting and an additional unbilled finance facility.

Red Commerce is majority owned by Dunedin, a mid-market private equity firm, which is currently investing in businesses from its £300m fund. Dunedin purchased Red in 2010 with Red commanding an enterprise value of £44m. Dunedin and the management team have a high growth strategy for the next three years: £90m turnover is forecast to grow to £189m in 2019.

Red Commerce is one of an increasing number of Leumi ABL deals supporting Private Equity. Leumi ABL has a specialist understanding of the PE market having completed many successful PE deals in recent years.

Rob Wakeford, Leumi ABL Regional Sales Director in London, comments: “We had a clear mandate on what was required. With the help of Red’s highly professional team we were able to structure the facility as it was initially envisioned and look forward to supporting Red Commerce’s international growth plans.”

Liberty House Group

Liberty House Group

June 2016

Leumi ABL supports Liberty House Group with growth capital for its engineering businesses. As the UK steel industry continues to generate headlines, Leumi ABL is delighted to have supported Liberty House Group with a £20m Asset Based Lending facility comprising of Invoice Discounting and Stock Finance.

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Liberty House Group

Liberty House Group

June 2016

The facility will be utilised by Liberty Tubular Solutions and Liberty Distribution to deliver their ambitious growth plans that are already gathering pace. As part of Liberty Industries Group, the Liberty Tubular Solutions and Liberty Distribution Divisions are leading UK manufacturers, distributors and suppliers of steel tubing and specialist tubular components to the automotive and aerospace industries. The businesses are part of Liberty House Group, part of an international privately owned business specialising in metals trading and the manufacture and distribution of steel and advanced engineering products which employs c.3,000 people globally and has a current turnover of approximately $7 billion.

Sanjeev Gupta, Executive Chairman at Liberty House Group, commented: “Leumi ABL are an excellent choice of partner to fund our growth plans for this recent strategic acquisition for the group. They were able to work quickly and closely with us to deliver a flexible funding package that will support the growth of our new division. Liberty had access to key senior personnel at Leumi throughout the process which meant the financing was concluded in good time and in line with expectations, allowing us to move forward with our exciting plans for the business.”

Rob Wakeford, Regional Sales Director at Leumi ABL, added: “We are delighted to support Liberty House Group at a time when the state of the UK steel industry is very much in the spotlight. The combination of Leumi’s flexible and personal approach together with a credit decision made quickly meant that Liberty could move forward with the certainty of funding being in place. We very much look forward to working with the team at Liberty.”

Kindertons Group

Kindertons Group

June 2016

Leumi ABL completes £18m Kindertons deal. Leumi ABL has provided a £18m structured Invoice Discounting facility to support the refinancing of Private Equity owned insurance services business, Kindertons Group.

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Kindertons Group

Kindertons Group

June 2016

Leumi ABL completes £18m Kindertons deal. Leumi ABL has provided a £18m structured Invoice Discounting facility to support the refinancing of Private Equity owned insurance services business, Kindertons Group.

The refinancing provides flexible funding to support Kindertons’ growth plans, both organically and through a targeted buy and build strategy.Crewe-based Kindertons provides credit hire and accident management services to its customers, working with its partner insurers, insurance brokers and garage referrers. The Group also includes market leading motorcycle credit hire operator, Plantec and taxi credit hire operator, Sovereign Automotive. Kindertons is focused on providing exceptional customer service which is recognised by its referrers and customers.Sovereign Capital, the UK Buy & Build Specialist, invested in Kindertons in 2013. Since then, the Group’s revenues have grown significantly, to in excess of £90m in 2015. The Group generates over 35,000 vehicle hires per annum from its nationwide fleet of approximately 4,000 vehicles delivered from 14 depots.Nigel Ward, Group Finance Director of Kindertons, said: “We are delighted to have secured this funding from Leumi ABL to support our growth. Leumi have taken the time to understand the intricacies of our business and market and structured a facility to meet our requirements. We have already developed a close relationship with Leumi, successfully completed a further acquisition and look forward to their continued support.”

Rob King, Investment Director at Sovereign Capital, said: “We approached Leumi due to their pragmatic style and ability to structure business-appropriate financing packages. Leumi has delivered a funding solution which provides significant flexibility to support the business’s substantial growth.”

Martin Risman, Leumi ABL Regional Sales Director, commented: “It has been a complex process and transaction during which we appreciated working with excellent teams at both Kindertons and Sovereign Capital. The structure of our facilities, aligned to the sponsor support, provides a solid funding base from which Kindertons can expand and further prosper.”

Leumi ABL was introduced to the transaction by Litmus Advisory.

Legal advice to Leumi ABL was provided by Gateley plc and Pinsent Masons acted for Kindertons.

Pasta Foods Ltd

Pasta Foods Ltd

March 2016

Leumi ABL completes £8.5m Hoops and Shapes deal. Leumi ABL has supported Pasta Foods Ltd, a £28m turnover pasta and snacks manufacturing business, with a full asset based lending facility of £8.5m, comprising of Debtors, Stock, P & M and Term Loan facilities.

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Pasta Foods Ltd

Pasta Foods Ltd

March 2016

Pasta Foods recently invested heavily in a brand new, industry leading manufacturing facility in Norwich to serve its global customer base in every continent. Leumi ABL provided facilities to replace the existing clearing bank with headroom for growth. Customers include many of the leading pasta processing companies, including one very well-known brand name which uses character pasta shapes supplied by Pasta Foods.

Leumi ABL were delighted to partner with the existing investor shareholders and to back their future plans. Jason Holland, Regional Sales Director at Leumi ABL in the Midlands said: “This was a competitive tendering process where our refreshing approach, flexibility and timely response yet again enabled us to be the favoured partner. My thanks go to Peter Seary at Roythorne’s who initially put me in contact with the Company.”

Simon Webber, Director and shareholder at Pasta Foods, added: “We wanted to work with Leumi ABL due to the manner in which they are set up to support growth, particularly in a sector such as ours. They showed real understanding of the challenges in the food sector and the importance of having available cash. The ABL package, in particular the CID facility, will help greatly with our working capital requirements. Leumi ABL delivered the deal quickly and Jason was always available to offer support throughout the process.”

Additionally, Leumi were delighted to work with a wide range of Midlands’ advisers; Freeths for Leumi ABL, Prettys (Company) and Gateley (Bank). SIA undertook the asset valuations on behalf of Leumi ABL.

Laidlaw Ltd

Laidlaw Ltd

March 2016

Leumi ABL in 12 day Distressed Equity turnaround. 12 day turnaround Asset Based Lending facilities, including debtors and a term loan, were provided to £20m turnover Laidlaw Limited, an Architectural Ironmongery and Balustrades business. Leumi ABL supported the trade and asset purchase of the business by Intrinsic Equity Ltd, the investment arm of Orbis Partners LLP.

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Laidlaw Ltd

Laidlaw Ltd

March 2016

Leumi ABL in 12 day Distressed Equity turnaround. 12 day turnaround Asset Based Lending facilities, including debtors and a term loan, were provided to £20m turnover Laidlaw Limited, an Architectural Ironmongery and Balustrades business. Leumi ABL supported the trade and asset purchase of the business by Intrinsic Equity Ltd, the investment arm of Orbis Partners LLP.

The facility included invoice discounting, stock finance, plant and machinery finance and an amortising term loan to help facilitate headroom on the transaction.Laidlaw had been a profitable part of the Laidlaw Interiors Group which entered administration in December 2015. The new business will continue to provide technical ironmongery solutions to its varied range of clients in both the private and public sector. Laidlaw, a business established for over 130 years, has grown into one of the leading UK distributors and will build on its reputation for its specification expertise, scale and extensive product range.Leumi ABL worked in conjunction with Intrinsic and the management team to complete the deal in short timescales. Andy Gratton, Finance Director at Laidlaw commented: “We chose to work with Leumi due to their strong reputation in the market place. We worked closely with Intrinsic Equity Ltd and Leumi over the Christmas period to deliver the deal, securing the jobs of 140 individuals. Throughout the deal process Jason and the team worked hard to ensure that everything was in place for the planned completion date. The support received from Leumi both pre and post deal has been invaluable.”

Toby Arrowsmith of Intrinsic commented: “Leumi showed tremendous determination to ensure that all facilities would be in place for draw down at completion – including holding credit committee discussions on Christmas Day! The festive period obviously caused a number of logistical issues to the take on process that meant commercial and pragmatic solutions had to be found. Leumi delivered.”