Umeco agrees deal with Birmingham banks after supply chain sale
AEROSPACE group Umeco has signed a new £40m financing agreement with banks based out of Birmingham.
The deal with HSBC and Santander Corporate Banking follows the success disposal of the firm’s Pattonair supply chain operation to a private equity organisation.
The disposal will allow the Warwickshire based group to focus on its core business – supplying advanced composite materials to projects such as the Boeing 787 Dreamliner.
The sale of Pattonair to Quicksilver Holdco, which has been established by Exponent Private Equity, is expected to yield approximately £145.8m and deliver net cash proceeds of £109.3m (before transaction costs), of which £8m will be deferred and paid in four equal quarterly instalments between June 29, 2012 and March 29, 2013.
Under the deal agreed with HSBC and Santander, the banks will provide Umeco with a new five year Revolving Credit Facility.
The Revolving Credit Facility will be made available to Umeco in tranches totalling £15.3m ($25m) and £15m. The company, which has a global presence comprising offices in10 different countries, plans to take advantage of further international growth opportunities.
The HSBC team was led by Paul Dilkes, Global Relationship Manager, whilst Santander’s was led by Mark Eley, Relationship Director. HSBC will take responsibility for the company’s core banking needs in the UK.
Maurice Heath, HSBC’s Head of Corporate Banking in the Midlands, said: “We are delighted to take on this integral role alongside Santander. The past few months have seen Umeco make transformational decisions and the provision of this funding will ensure it is in the best position to move forward and make a success of its new strategy, both in the UK and internationally.”
Rothschild and Slaughter and May acted as advisors to Umeco while Pinsent Masons acted for the banks.
