Manufacturer Acquisition Finance

A long established company manufacturing specialist engineering components since 1946 was due to be acquired by new owners. As part of that transaction the new owners wanted to raise money against the existing assets of the business, including the manufacturing plant & machinery to fund the acquisition and approached Genesis Asset Finance for their expertise in this type of ‘leveraged buyout’.

We were asked to create a bespoke asset refinance facility, taking into consideration the considerable age of some of the equipment and the fact that the company was the only known user in the UK of the assets that formed the principal manufacturing line. To complicate matters further, some of the assets were fixed into the structure of the building and removing them in the event of default would be both costly and materially impact the value of the landlord’s property.

Using our expertise and creativity we provided a facility that other lenders wouldn’t consider. Because we are a close-knit team, we have the ability to creatively structure facilities outside normal parameters. We worked with existing management, the new owners and the property landlord to structure a 3-year facility that took all of the issues into consideration.