BFS provides £10m ABL facility to manufacturer

BFS provides £10m ABL facility to manufacturer

Bibby Financial Services (BFS) has agreed a £10m 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, enabling the business to unlock additional working capital for growth.

The refinance transaction was led by corporate sales director, Ben Smith, and corporate manager, Jonathan Myerscough, from the BFS corporate team.

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 m manufacturing. It is one of the largest privately owned polyethylene packaging manufacturers in the UK, with total annual capacity of 30,000 tonnes.

A spokesperson from Gelpack Excelsior said: “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 £6m 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.”

Smith added: “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.”