£7m facility drives latest acquisition in automotive supplier’s expansion plans
EVTEC, a Coventry-based supplier in the aluminium and automotive sectors, has acquired JVM Castings, of Worcester, for an undisclosed sum.
The deal was secured following a £7.4m multi-asset facility provided by Manchester-based Cynergy Business Finance.
To support EVTEC’s continued acquisition growth strategy, EVTEC and TSF Finance worked with CBF to structure a flexible asset-based lending (ABL) facility. The deal provided comprised a £3.5m invoice financing facility, along with a £3.9m plant and machinery (P&M) facility.
The acquisition will bolster EVTEC’s service offering in the aluminium die casting sector, allowing it to expand its capacity in servicing its order book of more than £700m over the next eight years. The acquisition is the latest deal as part of EVTEC’s strategy in acquiring tier 1 automotive suppliers to transition to the hybrid/EV automotive sector.
EVTEC was established in 2021, trading across the aluminium and automotive sectors. The business produces complex, lightweight aluminium die cast components and assemblies for Original Equipment Manufacturers (OEMs) across the globe. It currently boasts a number of industry-leading clients including Jaguar Land Rover, Ford and Aston Martin.
JVM Castings was established in 1929 in Worcester, offering world leading aluminium die casting manufacturing. The business provides an end-to-end service to customers, from design, project management, machining, assembly and heat treatment.
David Roberts, EVTEC chairman, said: “In the last two years we have already established ourselves as a leader in the aluminium die casting industry, and this latest acquisition of JVM will help us to further bolster this position. As our impressive order book of over £700m continues to expand, JVM will be crucial in providing the additional capacity needed to deliver on this.
“By working closely with Luke and the CBF team we were able to agree a flexible, multi-asset structure that will ensure the longevity of the acquisition. With a strong pipeline of new customers, we remain in a strong position to continue growing at a group level.”
Luke Fitzsimmons, corporate sales director at Cynergy Business Finance, said: “Having already achieved significant growth in a relatively short space of time, this latest acquisition for EVTEC will help to further consolidate its leading positioning in the automotive sector.
“We were able to work closely with David and JVM’s existing management team to build a multi-asset facility that catered to EVTEC’s specific needs in completing the acquisition. With the transaction now complete, I look forward to seeing both EVTEC and JVM continue to grow and serve even more customers.”
