Browne Jacobson has advised KeTech Group Limited on a landmark
£4.5m re-financing deal. The deal is the first of its kind in
the country to be backed through the Government's Capital for
Enterprise Fund.
The company is to receive £2m from the Enterprise Fund as
part of a £4.5m refinancing that includes £2.5m in
invoice discounting from Centric Commercial Finance.
Richard Cox, Corporate Partner at Browne Jacobson, led the team
that advised KeTech's management. The fund manager was Octopus
Investments Limited.
KeTech, which employs more than 100 people at six UK sites
including Bilborough in Nottingham, makes devices which are used by
the armed forces, police and professional security services to
detect hidden objects such as explosives, chemical weapons and
drugs. It also sells software integration services to companies
like Chiltern Railways, Metronet and Mitie.
The £75m Capital for Enterprise Fund was set up by the
government in partnership with a number of financial institutions.
It is made up of £50m of Government funds and an additional
£25 million from Barclays, HSBC, Lloyds TSB and RBS. The
purpose of the fund is to provide equity and quasi equity of
£250,000 to £2 million for companies with a turnover of
up to euro 50 million who have viable business models and growth
potential in need of long term capital. The Fund is managed by
professional experienced fund managers such as Octopus on behalf of
the Government.
The Browne Jacobson deal comprised Richard Cox and Richard Medd
(Corporate), Paul Ray and Faizal Bhana (Banking) and Andrew Noble
and Beth Dowson (Tax).
Richard Cox, Corporate Partner at Browne Jacobson,
said: "This is a landmark deal and one which we are delighted
to have been involved with. The Enterprise Fund was set up to help
essentially sound businesses that have real growth potential but
have struggled to secure the necessary financial backing to achieve
their ambitions. KeTech is a perfect example of this and this
latest injection of cash will help the company to plough ahead with
its future expansion plans."