The deal

Our Debt Advisory team has advised Rubicon Partners, the London-based private equity partnership, on the acquisition of CMD Ltd, a British manufacturer of power and ergonomic solutions.

Founded in 1984 and headquartered in Yorkshire, CMD Ltd meets the challenges of integrating power and AV/data access for people working in offices and commercial spaces. Their products range from underfloor powertracks to power hub distributions systems; designed to be quick, easy to install and adaptable for contractors, clients and end-users.

The FRP Corporate Finance Debt Advisory team were appointed to help Rubicon Partners secure a leveraged acquisition finance package to help support their investment into CMD Ltd. The team, led by Partner Tom Cox, prepared detailed briefing materials, highlighting the strengths of the business and its potential under new ownership, to take to the lender community.

Given the deal represented a carve out of a non-core subsidiary from a US parent, the debt team needed to mitigate lenders separation concerns and any risk perceptions relating to the potential cyclicality of end user markets.

Our team led negotiations with all lenders, supported the delivery of management presentations to shortlisted parties and finally supported Rubicon and their legal counsel on the negotiation of financing documentation to closing, with the preferred funding partner, OakNorth Bank.

Tom Cox, Partner at FRP Corporate Finance, said: “We have a strong relationship with Rubicon Partners, and are proud to have been able to assist them in this opportunity. The deal required some complex credit-based negotiations, but we were able to secure three fully approved financing offers to take to our client. The new finance package provides Rubicon Partners with a highly efficient capital structure with substantial covenant headroom which will allow the business to invest for growth.”