press release
Browne Jacobson advises Leumi ABL on Drivetrain MBO
25 May 2010
Browne Jacobson has advised Leumi ABL, the specialist asset based
lending subsidiary of Bank Leumi (UK) plc, on its £2.5m asset based
lending (ABL) facility to support the management buy-out (MBO) of
Grantham based ATC Drivetrain UK.
The ABL package, which comprised a confidential invoice
discounting line, plant and inventory facility, will help fund the
MBO from its US-parent company ATC Technology as well as provide
ongoing working capital post-deal.
The £10m turnover business, which will be renamed Autocraft
Drivetrain Solutions Limited, is a leading European supplier of
remanufactured diesel and petrol engines. Its customers include
Ford, Jaguar Land Rover, GM, Chrysler, Volvo Cars, JCB and
Subaru.
Leumi ABL was established in 2006 as the specialist asset based
lending subsidiary of Bank Leumi (UK) plc, which has been operating
in the UK since 1902, and is now one of the largest subsidiaries of
the Bank Leumi Group.
Shaun McCabe of Browne Jacobson’s Banking Team led the team
advising Leumi ABL, assisted by Faizal Bhana (Banking) and Vicky
Camfield (Property).
Shaun McCabe, commented:
“This is the first deal we have acted on for Leumi ABL. The
market appetite for structured asset-based lending facilities
remains buoyant and Leumi ABL is well placed to provide flexible,
alternative financing solutions for a whole range of scenarios
including growth, buyouts, buy-ins and mergers and
acquisitions.”
Jason Holland, Midlands Regional Sales Director at Leumi ABL,
added:
“Following the successful implementation of a turnaround
strategy by the management team, the company is now well placed to
exploit market opportunities for growth as new engine emission
rules come into force shortly. The new financing facility will
generate the working capital Autocraft needs to expand their
operations.”