Deal

£6.75 million carve-out acquisition for Inspirit Capital

FRP Corporate Finance secures ABL facility for Inspirit

Our Debt Advisory team has supported private equity firm Inspirit Capital on its acquisition of Alpha3 Manufacturing group (Alpha3), a manufacturer of complex electro-mechanical components.

Led by Partner Nick Grainger, our team worked with London-based Inspirit to raise £6.75 million in asset-based finance to part fund the purchase, in addition to supporting ongoing working capital requirements.

Based from two sites in Scunthorpe and Stoke, Alpha3 is a manufacturer of complex electro-mechanical assemblies, cable harnesses and other electrical components.

Inspirit Capital approached FRP Corporate Finance in March 2022 with the intention of finding an asset-based lender that had both the desire and capability to finance the transaction via a debt structure leveraged against the assets and earnings of the target business.

Our team duly conducted a competitive debt auction process to help fund the proposed acquisition, identifying a selection of potential partners that would meet Inspirit Capital’s requirements. This led to Shawbrook Bank being selected as the finance partner.

Having mandated Shawbrook Bank, our Debt Advisory team advised Inspirit Capital during the legal documentation stage and through to completion of the transaction.

Nick Grainger, Debt Advisory Partner at FRP Corporate Finance, said: “There is currently a high level of opportunity in the market for bespoke funding solutions and we anticipate this trend to continue. With this in mind, identifying the right backers is key.

“We have developed a strong working relationship with Inspirit through our past work with the firm, so when they appointed us to help secure a financing package for their acquisition of Alpha3 we felt well placed to identify which backers would be a suitable fit.”

Will Stamp, Founding Partner at Inspirit Capital, added: “I am extremely excited by this development. With Inspirit’s support, Alpha3 now has the opportunity to operate in a more entrepreneurial environment and unlock its growth potential. Alongside our team’s outstanding know-how and customer focus, I am confident that Alpha3 will be a very successful independent business.

“Having worked with Nick and the team before, we could rest easy in the knowledge that they would have a detailed knowledge of our preferences and how we work, and would present us with funding options that would best fit our requirements.”

Related team

Nick Grainger

Nick Grainger

  • Partner
  • Debt Advisory
  • London

Dave Edwards

Dave Edwards

  • Partner
  • Debt Advisory
  • London