The deal

FRP’s Debt Advisory team has successfully sourced and secured a funding structure that enabled a London-based investment firm to complete the acquisition of UK paper mill Pelta Medical Papers.

Cumbrian-based Pelta, a specialist in manufacturing barrier papers for the medical sector, was being sold by listed multinational pulp and paper group BillerudKorsnäs AB, after the group decided that the company was no longer part of its core strategy.
The investor had been involved in a competitive auction process to buy the business, and was seeking to raise asset-based finance to support the acquisition as well as ongoing working capital requirements.

FRP’s Debt Advisory team, led by Partners Nick Grainger and Dave Edwards, was engaged to find an asset-based lender with the capability to finance the transaction using a structure that leveraged the significant assets of the target business.

Having reviewed and considered the core data, the team was able to identify a shortlist of lenders, with two highly competitive and market-leading finance offers received. The investment firm selected Arbuthnot as its preferred financing partner, due to its finance structure most closely matching the original brief.