Excelsior is one of the largest independent flexible packaging manufacturers in the UK, whose customers include Birds Eye, Haribo, Premier Foods and SC Johnson. Last year the £44m turnover company was acquired by private equity firm Growth Capital Partners LLP. Mark Taylor said: “The business had a clear strategic plan devised when Growth Capital Partners invested in the business during 2012. Management are midway through implementing this and a bespoke funding structure was required.”
Andy Pickford, Corporate Development Director at Royal Bank of Scotland Invoice Finance, added: “We were introduced to Excelsior by Mark Taylor at a time when they were seeking a new funding partner that could provide a complete solution to support their UK operations, as well as having an eye on their US capabilities in North Carolina.”
The £13m facility consists of working capital and term loan funding secured against the company’s receivables and fixed assets, in an ABL structure. ABL is becoming increasingly common in the mid-market and is often a good way for businesses to secure flexible funding to meets their requirements, at a competitive price point. We expect to see further adoption of this type of structure in the future.
Andy Pickford also said: “Excelsior were already using invoice discounting and loan facilities but we were able to demonstrate the benefits of using ABL to provide a complete debt solution. By working with our colleagues in RBS Corporate & Institutional Banking we have delivered a complete funding solution under one roof.”
Mark Taylor further commented: “We are confident that Excelsior is a fantastic fit for RBS and the new debt structure will assist with international expansion.”