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Case Study

Denmaur Independent Papers Ltd

Posted: 14th January 2022   |   Share

Denmaur Independent Papers Ltd

Leumi ABL is pleased to announce that we completed a new finance package with Denmaur Independent Papers Ltd (Denmaur) in December 2021. Denmaur is a privately owned £100M turnover paper and board merchant, currently pursuing a buy and build strategy.

Leumi ABL provided a £30M facility, replacing a clearing bank invoice discounting facility of £20M, which comprised of Invoice Discounting and Stock Finance.

Mike Gee, Founder and CEO of Denmaur, said: “We have been talking to Leumi ABL for twelve months. We wanted to establish a relationship with positive people we knew we could work and grow with. They reviewed some acquisitions we have in mind and tried to show us how they would fund them, which gave us confidence. Due to Covid initially all meetings were on Teams, but late in 2021 we were able to meet.  Their initial offer in 2021 was very similar to the offer we finally signed up to, which also gave us confidence.”

Matt Groom, Finance Director of Denmaur, adds: “Once the decision had been made to progress with Leumi ABL the process was exceptionally smooth. Regular communication from Jonathan and his team ensured everyone knew what needed to be done and who was responsible. This meant we were able to complete quickly and can now look forward to the next growth chapter in Denmaur’s history.”

Stuart Stepney, of Castle Corporate Finance, adds; “We ran a process, talking to a number of asset based lenders and banks. Leumi ABL stood out from the rest, as they were flexible, had short chains of command, and an obvious desire to complete the transaction with Denmaur. Throughout the negotiations they were consistent and supportive, as well as being competitive, and we were very pleased with the facility delivered to our client.”

Jonathan Hughes, Regional Sales Director at Leumi ABL, confirms: “I have known of Denmaur for nearly twenty years, and was delighted to have the opportunity to talk to them. They are a successful, well managed and long-established business, which can use asset based lending effectively to run a profitable business. We are looking forward to a long and mutually rewarding relationship.”

Note: Denmaur were advised by Castle Corporate Finance (Lead Advisory) and Outset (Legal).  Leumi ABL were advised by SIA Group (Stock and Property Valuations) and Shoosmiths (Legals).