A north-east mechanical engineering firm has secured a funding package worth £90million as it looks to recruit an extra 700 people this year.
Two leading banks have joined original lender Bank of Scotland to provide finance for EnerMech.
The firm said the addition of Norwegian bank DNB and HSBC to form a “banking club” would allow the firm – which in five years has established a global footprint of more than 30 locations and a workforce of over 1,800 – to continue to grow.
The extra funds will be used to invest in new equipment, additional facilities and in expanding the workforce as EnerMech continues a global push that will see revenues increase to £280million in 2014 and the total number of employees rise to 2,500.
To date, Aberdeen-headquartered EnerMech has invested £30million on acquisitions and £80million on organic growth and has put aside a further £15million for future acquisitions.
Finance director Michael Buchan said: “The size and international reach of our operation means we have now outgrown a single bank. By establishing a banking club, we have a dual advantage of pooling the funds necessary to facilitate our projected growth and can also call on a wealth of global financing expertise.
“We have been very happy with the support and service from Bank of Scotland, who have been involved since the company was first established in 2008, and we are delighted they remain on board as our lead agent bank.”
The international reach of the banking club will allow EnerMech to consolidate its overseas banking arrangements. Bank of Scotland has refinanced a £60million package as part of the new arrangement.
The arrangement follows an increased investment earlier this year by private equity specialist Lime Rock Partners, which supported the acquisitions of Vicon Services in Australia and UK-based Total Reclaim Systems.
Andrew Robertson, relationship director at Bank of Scotland, said: “We are delighted to continue supporting the team at EnerMech with an increased funding package as part of their ongoing international growth plans.”
Simmons and Company advised EnerMech on the refinancing package with legal support from Burness Paull. Legal advice to the banking club was provided by Blackwood Partners with financial due diligence undertaken by KPMG.