Arbuthnot Commercial ABL delivers £3m working capital deal for LEONI Temco following an international corporate carve-out

Arbuthnot Commercial ABL structured a comprehensive £3m funding package comprising a confidential invoice discounting line, a plant and machinery revolver, and a cashflow loan. The latter will be converted to a property loan post-transaction, creating additional headroom to facilitate growth.

Temco, established in 1920, is a leading supplier of copper and copper alloy-based products for use in highly demanding, safety-critical applications across a wide range of industries, including aerospace, renewables and industrial applications. The company has built a global presence and a prestigious customer base, capitalising on its longstanding commitment to quality and durability.

DI Mittelstand is the special situations strategy of Deutsche Invest Capital Partners GmbH (Deutsche Invest). DI Mittelstand invests specifically and highly selectively in companies that offer significant operational and strategic upside potential and where an active investment approach can create sustainable value. Deutsche Invest is an entrepreneurial alternative asset management platform focused on Europe, and its investment strategies include Capital Solutions, Technology, Real Estate and Special Situations.

DI Mittelstand completed the carve-out of Temco, together with sister companies in Germany and China, that formed LEONI’s Business Group Wire Products and Solutions, and will be implementing a strategic growth plan for the group in the years to come.

Henrik Munte, Managing Director, DI Mittelstand, said:

“For a synchronised international deal, meeting set deadlines is an imperative, and having a reliable financing partner was essential to ensure timely delivery. In a market where financing terms are often similar, the interpersonal aspects of the decision to work with a particular lender become even more important. Arbuthnot Commercial ABL’s team was highly motivated to deliver the transaction, offered a competitive funding package and was easy to work with. Arbuthnot structured a flexible revolving facility, tailored to Temco’s size and designed for growth. Aided by the appropriate level of working capital financing, the future for the independent business is bright, especially with sectors like power and data transmission signalling positive economic growth.”

Andrew Rutherford, Commercial Director at Arbuthnot Commercial Asset Based Lending Limited, said:

“We are delighted to have supported DI Mittelstand by structuring the desired level of working capital financing to propel the growth of the stand-alone business. The key to winning this mandate was the creativity and flexibility of deal structuring to ensure capital certainty and the ability to deliver the deal within the context of a very tight completion timeframe immediately following the carve-out event. This was underpinned by commercial decision-making throughout the credit underwriting and legal processes to make the deal happen”

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Registered in England and Wales no. 10915339. Arbuthnot Commercial Asset Based Lending Limited’s registered office is Arbuthnot House, 7 Wilson Street, London, EC2M 2SN. Arbuthnot Commercial Asset Based Lending is not authorised and regulated by the Financial Conduct Authority.

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