£75m finance package for private equity-backed glass manufacturer
Manufacturer Allied Glass, which is backed by private equity firm CBPE Capital, has secured a £75m debt package from Investec to support its growth plans, underpinned by strong demand in the global whisky and gin markets.
The Wakefield-based specialist manufacturer and distributor of glass bottles and containers to the premium spirits and food and beverage sector produces 600m bottles a year across 450 product lines.
Investec put together a bespoke debt structure comprising a mix of asset-based and cashflow lending to support the company’s long term growth, working capital and seasonality requirements.
It was delivered by Investec’s specialist ABL & Cashflow team comprising James Cullen, Paul Rablen and Steve Ive.
Alan Henderson, CEO of Allied Glass, said: “The team at Investec designed a blended funding structure specifically for our business’s shape and needs, giving us the firepower and headroom to take advantage of growth in our market.”
Cullen added: “We regard the Allied Glass management team as best-in-class and we’re delighted to be partnering with them at a really exciting time in their story. This transaction is a great example of our strategy to support great British businesses, putting them on the front foot to compete in a global marketplace post-Brexit. A changing economic landscape requires a shift from a traditional debt approach to more flexible financing.
“Manufacturers and distributors are well suited to asset-based and cashflow lending debt structures because they have high levels of balance sheet working capital within receivables and inventory alongside cashflow to service term lending. We’re keen to work with great management teams in compelling businesses such as Allied Glass.”
Allied Glass currently has a 25% market share in its key segment of premium Scotch whisky bottles and the business says it differentiates itself on innovation, speed to market, premium-end products and shorter production runs.
Mid-market private equity firm CBPE Capital has held a majority stake in Allied Glass since 2013.
