Discovery Foils wraps up Novelis deal
Discovery Foils, based in Shropshire, has purchased the Bridgnorth operation of aluminium-rolling and recycling business Novelis. Under the agreement, 105 employees will transfer to foil producer Discovery Foils.
As well as rescuing more than 100 jobs, the sale also include the assets of the business. Under a separate agreement, Novelis will continue to supply foil to the operation.
Discovery Foils financed the acquisition with the support of a funding package from asset based lender, Venture Finance. Finance approaching £3m was provided, including invoice discounting, plant and machinery and cashflow term loans.
Novelis operates in 11 countries with about 11,600 employees and reported revenues of $8.7bn in the fiscal year 2010.
The Birmingham office of law firm Cobbetts advised on the deal. The sum of the acquisition was not disclosed.
Cobbetts’ corporate partner, Mark Gibson, who led the team for Cobbetts, said: “Multi-colour printing is not a core activity for Novelis, but it represents a good strategic fit for Discovery Foils.
“By selling on the business as opposed to simply closing it, Novelis has safeguarded over 100 jobs. Despite the complex structure of the deal, we successfully concluded the transaction within a very tight timeframe.”
