Deal

FRP secures funding package for automotive supply chain business

Arlington Engineered Systems bought out of administration by industrialist

Our Debt Advisory team, led by Director Andy Pickford, has helped to secure a multi-million-pound acquisition and working capital funding package for Evtec Automotive Limited from BREAL Zeta Commercial Finance.

The package will support new owner David Roberts, industrialist and former group chairman of Arlington Industries until 2014, as he acquires the business and embarks on a growth strategy that will see Evtec Automotive invest in its team and core services. As part of its growth strategy, Evtec Automotive will seek to drive turnover from £55 million to £70 million over the next three years.

Headquartered in Coventry, Evtec Automotive – which was formerly known as Arlington Engineered Systems and part of the Arlington Automotive group (in administration) – specialises in manual assembly for the automotive sector. This includes providing electrical, fluid and air, mechanical and aftermarket module assemblies.

David Roberts has established Evtec Automotive as a newco to acquire Arlington Engineered Systems out of administration and plans to restart operations in a move that will save up to 110 jobs and create a further 50 jobs.

The deal, which is backed by a funding package from BREAL Zeta Commercial Finance, will see David take on the role of Chairman and maintain the firm’s presence in Coventry. The business will continue its work with clients such as Jaguar Land Rover and Ford as they restart production following the coronavirus pandemic.

David also plans to return the business to its Remploy heritage and provide employment opportunities for disabled people across the West Midlands.

Commenting on the deal, David said: “Arlington Engineered Systems was a strong business, but the immediate result of the coronavirus pandemic impacted the firm in a way no one could have predicted. Now that production across the automotive sector has kicked back into gear, I believe there is still a strong future for the firm and with the right leadership and financial support I’m confident that we can drive future growth. My immediate focus is to support the team and established client relationships, and I will then be looking to refocus the business on its roots – which includes providing more employment opportunities for disabled people across the region.

“FRP has played a huge role in getting this deal over the line and I’d like to thank Andy and his team for introducing me to BREAL Zeta Commercial Finance and helping to secure the funding that will set us up for future growth.”

Our Corporate Finance team also provided financial due diligence to support the deal.

Andy Pickford, Director in our Debt Advisory team said: “Not only is David an industrialist with a strong background in the automotive sector, he knows the business extremely well given his former role with Arlington Industries and is well-placed to drive forward the growth of the business. He plans to return the company to its roots of providing employment opportunities for disabled people across the West Midlands and bring these core values back to the fore. BREAL Zeta proved to be a flexible and forward-thinking lender, and we’re thrilled to have secured a sizeable structured facility from the team that gives David the financial backing he needs to kickstart his growth plans, and their support is a sign of confidence in David and his team.

“We’re seeing an increase in carve-out M&A transactions as a result of the coronavirus pandemic and expect this deal type to remain a core feature of the market over the months ahead.”

Annabel Todd, Business Development Director at BREAL Zeta Commercial Finance, added: “Under David’s leadership, we’re confident that Evtec Automotive has a strong future and it’s been a pleasure to provide the financial package that will not only support employment opportunities for people across the West Midlands but create a business that is truly focused on making a difference to its local community.”

BREAL Zeta Commercial Finance was advised by Gateley (legal) and David Roberts was advised by Thrings (legal).

Related team

Andy Pickford

Andy Pickford

  • Director
  • Debt Advisory
  • Manchester

Michael Bloom

Michael Bloom

  • Associate Director
  • Corporate Finance
  • Manchester