27th January 2016
Shawbrook has completed a £3,000,000 working capital transaction for Altec Group, a precision engineering solutions provider based in County Durham with operations across the North of England. This facility initially comprises a £2,500,000 confidential invoice discounting line combined with a £500,000 cash flow loan.
Financial Due Diligence on the transaction was conducted by Dow Schofield Watts Transaction Services.
This deal follows a substantial investment from Business Growth Fund (BGF) to support the formalised buy and build strategy and organic growth of the group.
Shawbrook is already familiar with the group, having provided a funding line for a subsidiary, Sigma Technologies Limited, earlier this year.
Altec Group provides full engineering contract support for mechanical and electrical engineering, CNC precision machining, special purpose machine design and build and hydraulics to a wide range of industries including Defence, Yellow Goods, Automotive, Oil & Gas, Nuclear and Renewable Energy, Aerospace, Space Science and Medical Science.
The group plans to scale-up its business through further planned acquisitions and organic growth, including further expansion and investment into its Durham site and the delivery of new value-added services such as specialist coatings.
Simon McIntosh, group finance director comments: “As a rapidly growing engineering group we were seeking a working capital provider who would not only understand what we are looking to achieve but who will be with us on our business journey. With Shawbrook we have the reassurance that they do what they say they will and that they know what it takes to get deals over the line. It is vital that our working capital provider has the capacity to grow with us, particularly as we plan to double the size of the business over the next few years.”
Tim Hawkins, Managing Director at Shawbrook Business Credit adds: “We are delighted to fund Altec Group and look forward to supporting the ambitions of the management team and the expansive buy and build strategy going forward.”