£25m funding boost for CorpAcq

BUY-and-build group CorpAcq has received a £25m funding boost from corporate credit specialist Alcentra to support its growth strategy.

It is the second time Alcentra has backed the Altrincham, Cheshire-based CorpAcq, having invested in 2013.

CorpAcq chairman Simon Orange said the new loan would be used to repay some existing debt and provide capital for investment in its portfolio of businesses as well as further acquisitions.

The group currently comprises 11 businesses across the North West, Yorkshire and the Midlands. Their activities span building services, manufacturing, precision engineering, packaging, and plant, generator and forklift truck hire.

Earlier this month, CorpAcq announced the acquisition of Northern Packaging, based in Skelmersdale, West Lancashire and is looking to complete at least five more deals this year.

Mr Orange said: “We have developed a good relationship with Alcentra and this new funding reflects their complete confidence in CorpAcq, the strength of the existing portfolio, our management team and our business plan.

“We have several deals pending and believe this money, together with cash-flows from our existing portfolio, will be enough for us to acquire 20 businesses over the next five years.

“This should take us to closer to our target of achieving annual profits of £100m.”

Frédéric Méreau, senior executive director at Alcentra, said: “We are pleased to be CorpAcq’s financing partner and to support the management team in its future growth ambitions.

“We remain very impressed by the consistency, discipline and strong performance of CorpAcq’s investment approach.”

CorpAcq was advised on the transaction by Lee Teste, of Summerlin Corporate Finance, and Matt Fleetwood, of law firm Fieldfisher.