Thursday, May 18, 2017

From Shipping Line to Financial Expertise - Bibby Name Continues to Maintain Supply Chain Links

New Deal Will Release Capital for Client Expansion
Shipping News Feature
UK – The name Bibby is one which will be familiar to most working in the freight transport industry with the Bibby Line Group having developed from a traditional British shipping line with a 200 year history, into an international force with a comprehensive and diverse portfolio. Although the organisation's interests range from retail services to woodland burials, many of the subsidiary operations still have links with the maritime world and the supply chain, and so it is with Bibby Financial Services (BFS), which has just announced its latest big money deal.

BFS, which moved its corporate headquarters away from the group’s traditional Liverpool home to Banbury, Oxfordshire at the end of last year, has agreed a £10 million Asset Based Lending (ABL) facility for Gelpack Excelsior Ltd, a packaging business with 55 years’ experience in manufacturing. The deal combines Confidential Invoice Discounting, Asset Finance, Stock Finance and Foreign Exchange, with the purpose of enabling the business to unlock significant additional working capital for growth.

Gelpack Excelsior was established in 1988 through the merger of Excelsior Plastics and Gelpack Industrial, however, production at the company’s Hereford base dates back to 1962. Today, the business produces films, bags, liners and sacks for a range of industry sectors, including food and beverage, medical and pharmaceutical, bedding and furniture manufacturing. It is one of the largest privately owned polyethylene packaging manufacturers in the UK, with total annual capacity of 30,000 tonnes. Ben Smith, Corporate Sales Director at BFS, commented:

“We take a relationship based approach to funding and the key to structuring this deal was developing a deep understanding of Gelpack Excelsior’s business model, as well as their future ambitions. Structuring a complex and integrated transaction such as this is a fantastic achievement. This deal is testament to our growing capability in the corporate finance market and it demonstrates how our growing product portfolio enables us to support bigger businesses, at a time when other funders are retreating from the market. It is also a great example of our asset finance, invoice finance and FX specialists working as one team to structure the right solution for the client’s business.”

Gelpack Excelsior was advised by KPMG’s Midlands Deal Advisory Team and lawyers Harrison Clark Rickerbys, and the packaging experts pronounced satisfaction with the pace at which the deal had been secured, saying in a statement:

“What attracted us to BFS was the Corporate team’s flexibility and speed and they were able to be innovative in how they structured a package that leveraged various assets. We have recently completed a £6 million capital expenditure program to enable us to bring new products to market. This, combined with a significant injection of working capital and integrated foreign exchange facilities, will enable us to invest in the business’s growth and serve more customers over the years ahead.”