Encon completes £54m funding deal
ENCON Group, one of the UK’s leading providers of specialist building materials, has set its sights on further expansion after securing a £54m refinancing deal.
The funding, which comprises facilities provided by funds and accounts advised by Farallon Capital Europe and Lloyds Bank Commercial Finance, will enable Wetherby-based Encon to continue building market share in the UK.
The Encon Group started trading in Halifax in 1981 as a distributor of insulation products. It now has branches in 24 locations across the UK, employs more than 500 people and has an annual turnover of £200m.
In 2011, the business underwent a management buyout, which was led by the current chief executive, Stuart Moore, and financed by Lloyds Bank.
Stuart Moore from The Encon Group said: “This funding transaction provides Encon with a stable financing base committed for the next five years and incorporates facilities both ample and flexible to provide for future growth and further enhancement of customer services. I am pleased to be extending our existing relationship with Lloyds Bank Commercial Finance and to be entering into a new association with Farallon Capital Europe.”
The Encon Group was advised by a multi-disciplinary team from law firm Irwin Mitchell’s Leeds and Sheffield offices led by partners Paul Johnson and Dean Gormley.
Paul Johnson, corporate partner in Irwin Mitchell’s Leeds office, said: “The Encon Group has performed strongly despite tough trading conditions and it is ideally placed to take advantage of the current upturn within the sector. This deal demonstrates the strength of the business and the confidence that its financial partners have in the company. We are delighted to have supported the deal and wish the management team at Encon continued success in the future.”
