EnerMech confirms details of cash infusionCompany News // July 30, 2010
Enermech Ltd has confirmed that Lloyds Banking Group's Corporate Markets division has boosted the growth prospects of the company with new funding worth £24 million.
The Aberdeen-based mechanical engineering services business will also streamline its global finance capabilities with a new international cash management facility.
The Lloyds Banking Group package incorporates the purchase of EnerMech's existing business premises and surrounding land worth £4 million and a revolving credit facility for the company worth an initial £10 million.
The deal includes an option to grow the credit facility in line with the company's profitability up to a total of £20 million.
EnerMech has also taken on Lloyds Banking Group's international cash management facility, which will enable the business to retain deposits of its main trading currency, US Dollars, in the UK. The move will minimise transaction costs across EnerMechís subsidiary companies throughout the world.
Andrew Robertson, Relationship Director with Lloyds Banking Groupís Aberdeen & North of Scotland Corporate Markets Team, said: "EnerMech is a Scottish company that is rapidly creating a global presence. This deal not only provides EnerMech with a substantial amount of credit but it also enables them to benefit from our bespoke international cash management service.
"EnerMech is a great example of a thriving Scottish business that is in a strong position to grow both domestically and internationally. The EnerMech management team has a proven track record and we are delighted to be supporting their ambitious growth plans with this substantial funding package."
Doug Duguid, Managing Director of EnerMech, added: "EnerMech has quickly built up a global reputation in all the major international oil and gas hubs and our ambition is to strengthen the Group with further acquisitions in the months ahead. We have been working closely with Lloyds Banking Group to identify the best way to develop our business and this latest deal demonstrates our commitment to long term growth."