Vita Group in £30m Handelsbanken move
VITA Group, the global manufacturer of cellular foams, industrial polymers and thermoplastics, has completed a £30m funding deal.
The Middleton-based group, founded in Oldham in 1949 and now with more than 50 sites in 20 countries, has consolidated its facilities with the £29.5m credit facility agreed with the Manchester Trinity Way branch of Swedish bank Handelsbanken.
In Europe Vita, previously known as British Vita, has 17 group businesses – with combined annual cash flows of more than €1bn.
Group treasurer Chris King said: “After operating with a variety of different banks across the region for many years, we were keen to build a long-term relationship with a single reputable provider who was aligned with our core strategy and able to deliver on all our complex operational requirements.
“The move will bring us improved efficiencies and significant cost benefits”.
John Burke, branch manager at Manchester Trinity Way, added: “We see as a major endorsement of the unique model of banking offered by Handelsbanken and highlights our growing profile in the UK market.
“We ensured that our local offering was tailored to meet Vita’s operational requirements whilst providing flexibility for their future plans”.
Handelsbanken was advised by the Manchester office of Eversheds and
Vita by London law firm Cleary Gottlieb Steen & Hamilton.
Majority owned by private equity group TPG, Vita’s products are used in applications including transportation, construction, furniture & bedding and packaging.
Last month Vita Group sold its subsidiary, Perrite Group, to US listed group A Schulman for $52m.
Perrite, a thermoplastics manufacturing business with operations in Warrington, Malaysia and France, employs around 220 people and recorded revenues of $140m in 2012
Its Warrington operations manufactures insulation materials for the sub-sea flexible oil pipe market.
