The Birmingham office of Cobbetts has advised leading global
aluminium-rolling and recycling business, Novelis, on the sale of
its confectionary foil packaging business at Bridgnorth to
Shropshire-based Discovery Foils.
The sale will see approximately 105 employees transferring to
Discovery Foils, along with assets of the business. Under a
separate agreement, Novelis will continue to supply foil to the
operation. The acquired business produces multi-coloured printed
foil packaging for confectionery products.
Novelis operates in 11 countries with approximately 11,600
employees and reported revenues of $8.7 billion in the fiscal year
2010.
The team at Cobbetts comprised corporate director Nick Dawson,
real estate director Julie Newell and commercial director Nigel
Gardner.
Birmingham-based corporate partner, Mark Gibson, who led the
team for Cobbetts, said: "Multi-colour printing is not a core
activity for Novelis, but it represents a good strategic fit for
Discovery Foils.
"By selling on the business as opposed to simply closing it,
Novelis has safeguarded over 100 jobs. Despite the complex
structure of the deal, we successfully concluded the transaction
within a very tight timeframe."
Discovery Foils financed the acquisition with the support of
premier independent invoice and asset based lender, Venture Finance
PLC. David Kaplan of Nelsons solicitors advised the team at
Discovery Foils and provided the introduction to Venture Finance
PLC, which was advised by Philip Jones at Keystone Law. A
comprehensive funding package approaching £3 million was
provided, including invoice discounting, plant and machinery and
cashflow term loans.
Teresa Geraghty, Business Development Manager for the Midlands
at Venture Finance, said "We wasted no time in quickly getting to
grips with Discovery Foils' funding requirements to buy the
business from Novelis and save 105 jobs in the region. Our broad
range of services meant we were able to offer the headroom needed
for the deal to take place and provide dependable ongoing working
capital to promote financial confidence for future growth."
For more information about Cobbetts, please visit their website
here: www.cobbetts.com