Case Study

Debt facility ensures off-highway wheels deal success

FRP’s Debt Advisory team works with Aurelius Equity Opportunities to secure funding for acquisition of GKN Wheels and Structures

Published: 19 February 2021

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Written by:

Andy Dimmock

Partner

Debt Advisory London

Dave Edwards

Partner

Debt Advisory London

Nick Grainger

Partner

Debt Advisory London

Background

Asset management company Aurelius Equity Opportunities (Aurelius) approached FRP to assist them in the acquisition of GKN Wheels and Structures from GKN. The target company is based in Telford in the UK, Denmark, and Iowa, USA; is a leading manufacturer of off-highway wheels components mainly for agriculture, but had become a non-core asset for GKN. Given the complexity of the geographic footprint, and the nature of the asset base, Aurelius approached FRP for support in raising debt to finance both the acquisition and ongoing working capital.

Action

Our Debt Advisory team sourced offers of debt from lenders in both the UK and US to finance the acquisition. We provided comparative analysis of these offers and a detailed view on the respective debt capacity versus existing debt offers. We then assisted with the legal completion of the transaction.

Outcome

The transaction was completed successfully, with a facility across the assets in the UK and US.

With the working capital facility in place, Aurelius will continue to build on GKN Wheels and Structure market-leading position and optimise future growth.