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Investec provides bespoke debt package for EmergeVest’s GBP75m buyout of CM Downton

Investec Growth & Acquisition Finance (Investec) has provided a bespoke asset based & cashflow debt package to support the GBP75 million EmergeVest-backed buyout of Downton, a Gloucester-based national logistics group.

The funding package was designed to fund the acquisition while also catering for working capital and growth, and included a receivables revolver alongside a term lending structure. 
 
The deal is the fifth Investec have backed with EmergeVest since backing the Hong Kong-based private equity house’s first UK deal in 2013.
 
Downton provides nationwide coverage from its fleet of 600 trucks and over 1,000 trailers which operate out of 10 core distribution hubs and a further 19 operating centres. The company generates a turnover of approximately GBP120 million from clients including AB InBev, Dyson, Whirlpool and Fever Tree.
 
Paul Rablen at Investec Growth & Acquisition Financem says: “We have known the EmergeVest team since inception and have seen first-hand their competence in scaling logistics businesses. Their sector expertise provides an elegant succession solution for the founders. Businesses such as Downton suit our capability to lend against both balance sheet assets and cashflows. Businesses in supply chain, logistics and warehousing such as Downton suit our capability to lend against both balance sheet assets and cashflows.”
 
Heath Zarin at EmergeVest says: “Investec’s ability to craft truly bespoke packages suited to the nuances of each business is why we choose to work with them on our deals. They delivered to a tight timeframe and created a structure which will allow the business to grow over the long term. We look forward to working with management and Investec in seeing the business continue to scale in coming years.”

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