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RJD completes debt refinancing and appoints a chairman at Chemigraphic

Lower middle market private equity firm RJD Partners (RJD) has completed the debt refinancing of portfolio company Chemigraphic Limited, one of the largest independent full service electronic manufacturing services providers in the UK. HSBC has provided the new debt facilities totalling GBP11million.

In late December 2010, RJD secured the management buyout of Chemigraphic by offering a full equity underwrite, thus providing certainty of delivery for the vendors and giving Chemigraphic the benefit of being able to negotiate the best possible debt financing package to support the company going forward. RJD and Chemigraphic selected HSBC from a number of competitive indicative financing offers.

In addition, Chemigraphic has recently appointed Mark Weavis as non-executive chairman.

Weavis, 51, is an Operating Consultant to RJD and is currently chairman of RJD portfolio company Stone Group. He was formerly chairman of another RJD backed business, Teaching Personnel, a leading provider of supply teachers. Here he led the management team in the RJD backed buyout in 2007. RJD and Mark sold Teaching Personnel in July 2010 for GBP45million, giving a return to RJD of over 3x its original investment.

Operating from a 40,000 square foot purpose built office and factory complex, Chemigraphic designs, assembles and installs complex printed circuit board based components and provides a number of related services including design, full assembly & testing and final delivery. The company has achieved consistent growth through offering a highly flexible and reactive full service and now employs over 125 staff and delivered an annual turnover of c.£20 million in the year to 31 March 2011. Chemigraphic has continued to perform strongly since the buyout.

Alex Hay (pictured), Partner, RJD Partners says: “We are delighted to have completed the refinancing of Chemigraphic. Despite the fact that debt is still relatively scarce, Chemigraphic received several competing indicative offers which is a reflection of the company’s strong growth track record and outstanding reputation for service.”

Bob Adams, CEO of Chemigraphic, says: “Mark Weavis’s experience of building a highly successful service led business will be of considerable benefit to Chemigraphic and we believe he will add significant strategic value to the board as the company grows into an increasingly important player in the UK specialist electronics sector.”

Mark Weavis says: “Chemigraphic has an excellent foundation of highly responsive customer relationships and an ambitious, growth orientated management team. I look forward to working with the Board and RJD to build on Chemigraphic’s success and to take the business forward to the next stage of development.”

RJD Partners and Chemigraphic were advised by Eversheds (legal) and Livingstone Partners (financial). HSBC was advised by Shoosmiths (legal).

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