Page 3 - Leumi-ABL-Deals-Review-2016

CASE STUDY: RED COMMERCE

Leumi ABL has completed a £25m facility for Red Commerce, a private
equity owned international recruitment business.

With its global headquarters in London, Red Commerce operates from
eight offices in the UK, Germany, Switzerland, US and Brazil, supplying
SAP consultants globally to meet the requirements of businesses
seeking full-time staff or contingent staff.
Staff operating the specialist IT software system, SAP, are highly skilled
and command high rates of pay, with an average of £500 per day being
paid to them. This creates a large working capital requirement.

When Red Commerce’s high street bank failed to have the appetite
to support its growth plans outside of the UK, Leumi ABL was able
to step in and set up facilities in the UK, US, Germany and Switzerland.
The package comprises of invoice discounting and an additional
unbilled finance facility.
Red Commerce is majority owned by Dunedin, a mid-market private
equity firm, which is currently investing in businesses from its £300m
fund. Dunedin purchased Red in 2010 with Red commanding
an enterprise value of £44m. Dunedin and the management team
have a high growth strategy for the next three years: £90m turnover
is forecast to grow to £189m in 2019.
Red Commerce is one of an increasing number of Leumi ABL deals
supporting Private Equity. Leumi ABL has a specialist understanding
of the PE market having completed many successful PE deals
in recent years.
Rob Wakeford, Leumi ABL Regional Sales Director in London,
comments:
“We had a clear mandate on what was required. With the help of Red’s
highly professional team we were able to structure the facility as it was
initially envisioned and look forward to supporting Red Commerce’s
international growth plans.”

CASE STUDY: PASTA FOODS

Leumi ABL has supported Pasta Foods Ltd, a £28m turnover pasta and snacks
manufacturing business, with a full asset based lending facility of £8.5m, comprising
of Debtors, Stock, Plant & Machinery and Term Loan facilities.
Pasta Foods recently invested heavily in a brand new, industry leading manufacturing
facility to serve its global customer base in every continent. Leumi ABL provided
facilities to replace the existing clearing bank with headroom for growth. Customers
include many of the leading pasta processing companies, including one very well-
known brand name which uses character pasta shapes supplied by Pasta Foods.

Leumi ABL were delighted to partner with the existing investor shareholders and to
back their future plans. Jason Holland, Regional Sales Director at Leumi ABL said:
“This was a competitive tendering process where our refreshing approach, flexibility
and timely response yet again enabled us to be the favoured partner.”
Simon Webber, Director and shareholder at Pasta Foods, added: “We wanted
to work with Leumi ABL due to the manner in which they are set up to support
growth, particularly in a sector such as ours. They showed real understanding of
the challenges in the food sector and the importance of having available cash. The
ABL package, in particular the CID facility, will help greatly with our working capital
requirements. Leumi ABL delivered the deal quickly and the team were always
available to offer support throughout the process.”