Birmingham banking club funds £50m R&D war chest
A £50m refinancing package part-funded in the Midlands has helped provide a war chest for R & D tools and systems provider Oxford Instruments.
The company, a market leader in the R & D support sector, has secured the refinancing through a banking club that includes Yorkshire Bank Corporate & Structured Finance in Birmingham.
Other members of the ‘club’ include HSBC and Santander. The funding replaces the company’s existing credit facilities and provides working capital and finance for any future acquisitions.
Oxford Instruments was founded by Sir Martin Wood in 1959 and was the first commercial spin-out company from Oxford University. The company created the world’s first superconducting magnet which led to the development of MRI instrumentation, and changed the face of medical diagnostics.
Based in Abingdon, Oxfordshire, it is now a worldwide business, supplying diverse markets which include industry, energy, the environment, health and research. Its expertise includes the creation of low temperature and high magnetic field environments; X-ray, electron and optical based metrology; nuclear magnetic resonance, and advanced semiconductor processing technologies.
Oxford Instruments has more than 25 offices and factories in Europe, the United States and the Far East and employs over 1,250 people worldwide.
It floated on the UK stock exchange in 1983 and has a market capitalisation of more than £300m. Turnover for the year to the end of March 2010 was £211m.
The Yorkshire Bank team was led by Peter Corcoran, corporate area director with Corporate & Structured Finance in Birmingham, and corporate director Jamie Stuart.
Kevin Boyd, chief finance officer at Oxford Instruments, said: “We are pleased to welcome Yorkshire Bank into our banking club. I have been particularly impressed by their professionalism and speed of response and look forward to developing our relationship in years to come.”
Mr Corcoran added: “We are delighted to support a growing high-tech business with an excellent track record. Oxford Instruments has a global reputation for providing the scientific and technology sectors with the tools to support their work.
“Having undergone a successful efficiency programme and exceeded its targets for organic growth, the company is well placed to exploit the opportunities which exist in its chosen markets. The new facilities will support this growth programme in addition to the ongoing requirements of the business.”
