Secure Trust Bank Commercial Finance has backed venture capital investors Mission Capital with a GBP3 million facility to support the firm’s future acquisitions in the manufacturing sector.
Established in 2014, Mission Capital looks to invest in innovative manufacturing and distribution firms in the UK, helping them to achieve their growth potential. Mission is made up of a group of partners who each have a successful track record of buying and building businesses in this sector in the UK. With this in mind, the firm has an objective to build a diversified group of UK manufacturing and distribution businesses over the next five years.
The investment from Secure Trust Bank will aid in providing working capital facilities to both finance future acquisitions and provide expansion funds for anticipated growth over the next three to five years.
As part of the deal, Mission Capital has recently completed its first transaction, acquiring a West Midlands-based upholstered furniture manufacturer. The business, which has been producing sofas and chairs for the domestic market for nearly 30 years, has revenue of GBP14 million and currently employs 160 staff.
Martin Jackson, Investment Manager at Mission Capital, says: “Mission Capital has made good progress over the last 18 months. We saw potential in the manufacturing and distribution sector, but the sector has traditionally had issues with working capital.
“Secure Trust Bank’s facility enabled us to invest with more freedom and provided flexibility to grow our portfolio post-investment. I am looking forward to developing our relationship as the business continues to expand.”
Sean Powell, National Sales Director at Secure Trust Bank Commercial Finance, says: “With a strong background in supporting private equity-led transactions, we are delighted to have had the opportunity to work with Mission Capital on the completion of its first acquisition. Our ability to structure full Asset Based Lending facilities in a creative manner together with direct access to decision makers can often provide an excellent fit for the private equity market.
“Working alongside existing management, Mission Capital’s expertise will further strengthen the team and we look forward to working with them in achieving the company’s growth ambitions and assisting Mission Capital as it builds its portfolio of investments.”