Pictured above: Shaun McCabe

Browne Jacobson has advised Leumi ABL, the specialist asset based lending subsidiary of Bank Leumi (UK) plc, on its £2.5m asset based lending (ABL) facility to support the management buy-out (MBO) of Grantham based ATC Drivetrain UK.

The ABL package, which comprised a confidential invoice discounting line, plant and inventory facility, will help fund the MBO from its US-parent company ATC Technology as well as provide ongoing working capital post-deal.

The £10m turnover business, which will be renamed Autocraft Drivetrain Solutions Limited, is a leading European supplier of remanufactured diesel and petrol engines.  Its customers include Ford, Jaguar Land Rover, GM, Chrysler, Volvo Cars, JCB and Subaru.

Leumi ABL was established in 2006 as the specialist asset based lending subsidiary of Bank Leumi (UK) plc, which has been operating in the UK since 1902, and is now one of the largest subsidiaries of the Bank Leumi Group.

Shaun McCabe of Browne Jacobson's Banking Team led the team advising Leumi ABL, assisted by Faizal Bhana (Banking) and Vicky Camfield (Property).

Shaun McCabe, commented:

"This is the first deal we have acted on for Leumi ABL. The market appetite for structured asset-based lending facilities remains buoyant and Leumi ABL is well placed to provide flexible, alternative financing solutions for a whole range of scenarios including growth, buyouts, buy-ins and mergers and acquisitions."

Jason Holland, Midlands Regional Sales Director at Leumi ABL, added:

"Following the successful implementation of a turnaround strategy by the management team, the company is now well placed to exploit market opportunities for growth as new engine emission rules come into force shortly. The new financing facility will generate the working capital Autocraft needs to expand their operations."

For more information about Browne Jacobson please visit their website here: www.brownejacobson.co.uk