Case Study

Acquisition of luxury car component specialist

FRP was engaged by Rubicon Partners to advise on a deal that would take Park Sheet Metal to the next level

Published: 03 May 2019

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Written by:

Tom Cox

Partner

Debt Advisory London

Background

Park Sheet Metal (PSM) was being marketed for sale by its private family shareholder, who was seeking a suitable investment partner to take the business to the next phase of its development. Founded by the Payne family in 1947, PSM is a market-leading supplier of prototype tooling and assemblies, and components for the niche automotive sector, with prestige and performance clients including Aston Martin, Bentley and McLaren. PSM is well placed to grow in line with the global demand for luxury cars and new electric vehicles. As a complex industrial investor with experience in the automotive and engineering sector, Rubicon Partners (Rubicon) was the ideal partner to complete the acquisition alongside the incumbent management team and a new management buy-in (MBI) CEO. FRP was engaged as exclusive debt advisor to Rubicon, to run a competitive debt raising process which would deliver the necessary acquisition finance and working capital facilities to complete the deal.

Action

The deal was complex due to both the MBI nature of the transaction, and the climate of the lending market at the time. Our team prepared suitable investment marketing materials to sell the credit to the market, highlighting the key differentiators of the business, which supported pricing premiums and stellar margins. We also managed lender Q&A and due diligence calls, supported the delivery of a management presentation, and subsequently negotiated key lending terms with four fully credit-approved lenders.

Outcome

Rubicon was advised by FRP’s Debt Advisory team on the debt raising to support its investment. It secured competitively priced and efficiently structured senior debt and working capital facilities from the mid-market financial sponsors team at HSBC. FRP Partner Tom Cox said: “PSM is one of the UK’s true engineering specialists, having established a genuine niche in the supply of components and pressings for the luxury automotive sector. It has been a pleasure to work with the management team and Rubicon to develop a finance package that meets the long-term needs of the business, and we look forward to seeing the company’s ambitious growth plans come to fruition.”