EVTEC, a UK supplier in the aluminium and automotive sectors, has secured a £7.4m multi-asset facility from Cynergy Business Finance (CBF) to support its acquisition of JVM Castings (JVM).
To support EVTEC’s continued acquisition growth strategy, EVTEC and TSF Finance worked with CBF to structure a flexible asset-based lending (ABL) facility. The multi-asset deal provided comprises a £3.5m invoice financing facility, along with a £3.9m plant and machinery (P&M) facility.
Coventry-based EVTEC was established in 2021, trading across the aluminium and automotive sectors. The business produces complex, lightweight aluminium die cast components and assemblies for Original Equipment Manufacturers (OEMs) across the globe. It currently boasts a number of industry-leading clients including Jaguar Land Rover, Ford and Aston Martin.
JVM Castings was established in 1929 in Worcester, offering world-leading aluminium die casting manufacturing. The business provides an end-to-end service to customers, from design, project management, machining, assembly and heat treatment.
The acquisition will bolster EVTEC’s service offering in the aluminium die casting sector, allowing them to expand its capacity in servicing its order book of over £700m over the next eight years. The acquisition is the latest deal as part of EVTEC’s strategy in acquiring tier 1 automotive suppliers to transition to the hybrid/EV automotive sector.
David Roberts, Chairman of EVTEC said: “In the last two years we have already established ourselves as a leader in the aluminium die casting industry, and this latest acquisition of JVM will help us to further bolster this position. As our impressive order book of over £700m continues to expand, JVM will be crucial in providing the additional capacity needed to deliver on this.
“By working closely with Luke and the CBF team we were able to agree a flexible, multi-asset structure that will ensure the longevity of the acquisition. With a strong pipeline of new customers, we remain in a strong position to continue growing at a group level.”
Luke Fitzsimmons, Corporate Sales Director at Cynergy Business Finance (pictured), commented: “Having already achieved significant growth in a relatively short space of time, this latest acquisition for EVTEC will help to further consolidate its leading positioning in the automotive sector.
“We were able to work closely with David and JVM’s existing management team to build a multi-asset facility that catered to EVTEC’s specific needs in completing the acquisition. With the transaction now complete, I look forward to seeing both EVTEC and JVM continue to grow and serve even more customers.”
