Packaging firm wraps up £10m finance deal

A West Midlands packaging manufacturer has wrapped up a £10m growth deal.

Hereford-based Gelpack Excelsior produces films, bags, liners and sacks for a range of industry sectors, including food and beverage, medical and pharmaceutical, bedding and furniture m manufacturing.

It is one of the largest privately owned polyethylene packaging manufacturers in the UK, with total annual capacity of 30,000 tonnes.

It has secured a £10m Asset Based Lending (ABL) facility through business financier, Bibby Financial Services (BFS).

The deal combines confidential invoice discounting, asset finance, stock finance and foreign exchange, enabling the business to unlock significant additional working capital for growth.

Gelpack Excelsior was established in 1988 through the merger of Excelsior Plastics and Gelpack Industrial, however, its production at the company’s Hereford base dates back to 1962.

Gelpack said it had recently completed a £6m capital expenditure program to enable it to bring new products to market. This, combined with a significant injection of working capital and integrated foreign exchange facilities, will enable the firm to invest growth.

The refinancing transaction was led by Biddy corporate sales director, Ben Smith, and corporate manager, Jonathan Myerscough, both of the BFS Corporate Team.

Mr Smith said: “We take a relationship based approach to funding and the key to structuring this deal was developing a deep understanding of Gelpack Excelsior’s business model, as well as their future ambitions.

“Structuring a complex and integrated transaction such as this is a fantastic achievement. This deal is testament to our growing capability in the corporate finance market and it demonstrates how our growing product portfolio enables us to support bigger businesses, at a time when other funders are retreating from the market.”

Gelpack was advised on the deal by KPMG and Harrison Clark Rickerbys.