Insider's February Deal of the Month revealed
Midlands Business Insider's assistant editor Sam Metcalf has chosen the work of the Derby advisers who completed Discovery Falls' buyout of Novelis for the February Deal of the Month award.
Who says the East and West Midlands are two separate entities? No-one told the group of Derby advisers who put together the deal that led to Discovery Foils buying Shropshire-based Novelis, which produces multi-coloured printed foil used as packaging for some of the world’s most famous confectionery products.
The company was sold by Novelis UK, which is part of a global conglomerate operating in 11 countries with reported 2010 revenues of $8.7bn.
“Derby’s aim is to put the suits back on the streets of the city centre,” says Midlands Business Insider’s assistant editor, Sam Metcalf. “This deal just goes to show the expertise already available in the city, and that can only be attractive for inward investors.”
Discovery Foils was advised by Nelsons Solicitors in Derby, led by corporate director David Kaplan and Ashgates Corporate Finance, led by Mark Selby. Funding was provided by Venture Finance and arranged by their Derby-based business development manager Teresa Geraghty.
Discovery Foils financed the acquisition with the help of invoice and asset based lender Venture Finance. A package comprising a funding line approaching £3m was provided including invoice discounting, plant and machinery and cashflow term loans.
Teresa Geraghty, business development manager for the Midlands, said: “We wasted no time in quickly getting to grips with Discovery Foils funding requirements to buy the business and save 105 jobs in the region. Our broad range of services meant we were able to offer the headroom needed for the deal to take place and provide dependable ongoing working capital to promote financial confidence for future growth."
The Nelsons team comprised corporate directors David Kaplan and Duncan Taylor, corporate solicitor Davinder Patara, commerce and technology director Michelle Craven, employment director Jenny Kinman and real estate solicitor James Woodward. The Ashgates Corporate Finance team comprised directors Mark Selby and Adrian Halls.
Novelis UK was advised by Birmingham-based Cobbetts on corporate matters, London-based Orrick on employment matters and London-based Macfarlanes on banking matters.
“Derby’s professional community should be proud of themselves,” says Metcalf. “Not only have they helped save 105 jobs, they’ve shown they have the pulling power when it comes to attracting some of the best deals.”
