CeDo MBO secured on ABL funding
Who:
Telford bin-liner and freezer-bag manufacturer CeDo.
Did what:
Has received a £26m asset-based lending facility (ABL) from Lloyds TSB Commercial Finance to support a £52m Rutland Partners-backed MBO.
What does this mean:
With a turnover of £185m and employing more than 1,500 people, CeDo operates from three manufacturing sites, including a large facility in Telford. The buyout was facilitated by a complex capital structure comprising private equity funding from Rutland Partners, a cross-border ABL package from Lloyds TSB Commercial Finance and a mezzanine tranche provided by Indigo Capital. Lloyds TSB Corporate Markets in Birmingham provided approximately £8m of ancillary banking facilities.
Who advised:
PricewaterhouseCoopers and DLA Piper advised on the deal.
Insider comment:
Lloyds TSB Commercial Finance put in place receivables finance facilities in the UK, Germany and France. It also provided a UK stock finance facility loan against the plant and machinery at the Telford factory, as well as manufacturing plants in Poland and China and a recycling plant in the Netherlands.
Piers Harmer, director, business development at Lloyds TSB Commercial Finance, said: “This transaction is the first European MBO of its kind to use a combination of ABL, private equity and mezzanine capital and demonstrates that ABL is a highly effective tool for supporting private equity-backed deals.”
