Deal of the Month: £20m funding package to support continued expansion
SERTEC GROUP’S £20m funding package from Business Growth Fund (BGF) and Lloyds Bank has been named as February’s Deal of the Month by TheBusinessDesk.com.
The deal is BGF’s largest single investment in the automotive industry to date.
The founding Mosedale family have exited, with the management team of chief executive Grant Adams, managing director Dave Steggles and finance director Martyn Hughes taking control.
The Coleshill-headquartered manufacturer secured the funding to support its expansion plans, which has already seen its turnover grow from £40m in 2008 to nearly £200m.
Alex Turner, editor of TheBusinessDesk.com West Midlands, said: “This deal is a strong vote of confidence in Sertec’s management team that they can continue to grow the company.
“The group’s ambitions, and the financial support of their partners, make them one to watch in the years ahead.”
Sertec is a key supplier partner to Jaguar Land Rover (JLR) among others, producing more than three million parts each week, from aluminium and steel, across its five operating sites in Birmingham.
The business invested heavily last year across all operating centres in new robotics, presses and site upgrades. This year sees the completion of a £16m press shop at its Coleshill factory, where 13 new transfer and progression presses will be fully operational within the next 12 months.
The investment by BGF and Lloyds Bank will facilitate Sertec’s continued expansion to support JLR’s development of new vehicles such as last year’s launch of Discovery Sport and Jaguar XE and this year’s arrival of Jaguar’s new crossover F-Pace and the convertible version of the record breaking Range Rover Evoque.
Ian Downing led the investment for BGF, along with Gurinder Sunner and Joanne Smith, while regional director for strategic finance Andy Clarke and relationship director Chris Pennick led for Lloyds Bank Commercial Banking.
Deal structure and advice to the Sertec management team was given by Ken Tuck, whilst Mat Harvey at Weightmans acted as lawyers.
BGF was advised by Nick Taylor of KPMG and Alistair Peet at Shoosmiths. Lloyds Bank Commercial Banking was advised by Andrew Madden at Gateley.
