Growth Fund - Loans & Equity Case Study
Envirodoor Limited (www.envirodoor.com), based in East Yorkshire, is an international manufacturer and supplier of specialist industrial and hygienic doors.
The business operates throughout the UK and Europe and together with its Scandinavian sister company, Interdoor AB, has built-up more than 40 years of continuous trading experience in the specialist door market.
Envirodoor’s key sectors cover the food, automotive, pharmaceutical, marine, energy, hospital, defence and Film / TV and its customers include some of the most well known blue chip companies in the world.
Mark Roberts swapped a career as a lawyer to take over the business from his father and as Managing Director he will be leading the company’s succession plans.
To continue its ambitious growth and maintain its position as a key player in the European specialist door market, Envirodoor required financial backing.
Envirodoor secured a £600,000 mezzanine investment from Finance Yorkshire.
Mark de-Villamar Roberts, Managing Director of Envirodoor, said: “We are one of Europe’s leading specialist door companies and the investment from Finance Yorkshire has provided the support we needed not only to maintain our position as a key player in the European specialist door market but to grow. The investment will be used to support the company’s marketing, recruitment and research and development programmes.”
Finance Yorkshire was represented by Walker Morris of Leeds in the deal, with external due diligence carried out by RSM Tenon. The Leeds office of Dickinson Dees LLP advised Envirodoor.
The Investment Rationale
Andrew Burton, Investment Director at Finance Yorkshire, said: “There has been a significant upturn in Envirodoor’s order book over the last 12 months, along with a requirement for further developmental work across its impressive product range.
“As such, a mezzanine finance package was considered most appropriate for their funding needs. It will help the company to continue growing its distribution network in the UK and across Europe and to build relationships with key partners in the industry.”
Mezzanine finance allows Finance Yorkshire to provide a loan to a company which repays over a period of time, with interest collated and repaid at the end of the deal along with a redemption premium based on the success of the business.
Envirodoor is the first business in East Yorkshire to receive an equity linked investment from Finance Yorkshire.
Mark added: “We worked closely with Finance Yorkshire to find a funding package that suited our business needs and we are delighted with the result. We would recommend businesses in the region to speak with the Finance Yorkshire team to see if there is a funding package available that meets their requirements.”
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire