Burdale provides funding for Paramount Communications’ acquisition of AEI Cables provides funding
19/09/2007
Burdale Financial Limited ("Burdale"), a member of Bank of Ireland Group, today announced the completion of an asset based lending financing package of £29 million to Paramount Communications Limited for its acquisition of AEI Cables.
Paramount Communications is one of the largest cable manufacturers in India and is the key cable player in all infrastructure sectors including power, railways, telecoms and industrial projects. AEI Cables is a leading manufacturer of cable solutions to global markets and production is centred at its state-of-the-art facility at Birtley, Near Newcastle-upon-Tyne.
The acquisition is substantially funded through borrowings by Paramount’s new wholly-owned UK subsidiary against the AEI Cables assets which it has acquired, without recourse to Paramount.
Sanjay Aggarwal, Chairman and CEO of Paramount Communications, said “AEI Cables is one of the oldest and internationally most reputed brands in the world, with numerous customer approvals and technological strengths. One of the key reasons for the acquisition is to access the world-class product development and technical know-how of AEI Cables, especially in the defence sector.”
Judith McMath, Director of Burdale Financial, added “We are extremely pleased to have been mandated to provide financial support to Paramount Communications to execute this transaction and provide on-going working capital facilities to AEI Cables. It represents an excellent opportunity for us to provide funding to an experienced and professional management team in their acquisition of a solid UK manufacturing business.”
Burdale have been particularly active in the North East of England this year, including the recent refinancing of Chapelthorpe plc, based in Wakefield, and the on-going provision of funding to Leeds-based Abbeycrest plc, which was refinanced by Burdale last year.
