Fox Wire looks ahead with finance deal and board changes
Fox Wire, one of South Yorkshire’s most long established companies, has secured a major equity and debt finance package that allows it to move forward with its growth strategy.
Tracing its roots back to 1842, Fox Wire is the UKs largest manufacturer of engineering wires in stainless steel, nickel alloys, copper, brass and aluminium, exporting into Europe from its UK base in Stocksbridge, Sheffield and through its wholly owned German subsidiary, Fox Wire GmbH.
The business has secured an investment of £1m from Finance Yorkshire’s Equity Linked Fund, alongside £3.2m debt and working capital facilities from HSBC, which will now allow Fox Wire to execute its growth strategy.
Corporate Finance advice was provided by Castle Square Corporate Finance and legal advice was provided by the Sheffield offices of Irwin Mitchell.
Paul Gower, Finance Yorkshire Investment Director said; "It is often quoted that equity investors should back management teams not businesses as it is management teams that drive businesses forward. Fox Wire’s team has ambition and commitment investing a significant amount alongside Finance Yorkshire. In addition we have further strengthened the team through introducing former Sheffield Forgemasters Chairman and Chief Executive David Fletcher as non-executive Chairman"
As part of the deal, director and major shareholder, Oliver Baker has made a further investment into the business and Commercial Manager Jonathan Rigby and Operation Manager Shaun Stancliffe have also invested and join the board as Managing Director and Operations Director respectively.
Fox Wire now plans to invest in working capital and production facilities to push forward with a strategy of becoming one of Europe’s leading specialist wire producers, pushing deeper into technically advanced markets including aerospace and energy as well as strengthening its existing position in the Oil and Gas sectors.
Oliver Baker said "This is a major step forward for the business and we’re excited by the opportunity to put Fox Wire back on the map. We have a fantastic team and brand name and now the necessary resources to succeed."
Sheffield based deal makers from Castle Square Corporate Finance, comprising Kevan Shaw, Lisa Ritson and Kevin Storm, acted as lead advisor to the company and the management team, sourcing the funding needed and project managing the transaction to completion.
Castle Square Director Kevan Shaw said, "Fox Wire is such a world class brand and we are delighted to have assisted the company and its management team raise the necessary finance to expand in the global market place. The funding package is evidence that equity investment and debt finance facilities are available to good businesses with strong management teams and we are sure Finance Yorkshire will be pleased with their investment".
The Corporate team of Irwin Mitchell’s Sheffield offices, led by Andrea Cropley and Matt Ainsworth, provided legal advice to Fox Wire and the management team on the new equity and debt funding arrangements.
Irwin Mitchell Partner Matt Ainsworth said "The expansion of businesses, such as Fox Wire, is essential for growth in our region. We are sure that with the backing and expertise of Finance Yorkshire the management team will take the business from strength to strength."
Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire