press release
Browne Jacobson advises KeTech on historic deal
14 August 2009
Browne Jacobson has advised KeTech Group Limited on a landmark
£4.5m re-financing deal. The deal is the first of its kind in the
country to be backed through the Government’s Capital for
Enterprise Fund.
The company is to receive £2m from the Enterprise Fund as part
of a £4.5m refinancing that includes £2.5m in invoice discounting
from Centric Commercial Finance.
Richard Cox, Corporate Partner at Browne Jacobson, led the team
that advised KeTech's management. The fund manager was Octopus
Investments Limited.
KeTech, which employs more than 100 people at six UK sites
(Aldermaston, Bedford, Bristol, London, Nottingham and Preston),
makes devices which are used by the armed forces, police and
professional security services to detect hidden objects such as
explosives, chemical weapons and drugs. It also sells software
integration services to companies like Chiltern Railways, Metronet
and Mitie.
The £75m Capital for Enterprise Fund was set up by the
government in partnership with a number of financial institutions.
It is made up of £50m of Government funds and an additional £25
million from Barclays, HSBC, Lloyds TSB and RBS. The purpose of the
fund is to provide equity and quasi equity of £250,000 to £2
million for companies with a turnover of up to euro 50 million who
have viable business models and growth potential in need of long
term capital. The Fund is managed by professional experienced fund
managers such as Octopus on behalf of the Government.
The Browne Jacobson deal comprised Richard Cox and Richard Medd
(Corporate), Paul Ray and Faizal Bhana (Banking) and Andrew Noble
and Beth Dowson (Tax).
Richard Cox, Corporate Partner at Browne Jacobson, said :
“This is a landmark deal and one which we are delighted to have
been involved with. The Enterprise Fund was set up to help
essentially sound businesses that have real growth potential but
have struggled to secure the necessary financial backing to achieve
their ambitions. KeTech is a perfect example of this and this
latest injection of cash will help the company to plough ahead with
its future expansion plans.”
For further information about the Capital for Enterprise Fund
visit : www.capitalforenterprise.gov.uk
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