Case Study 2min(s)

APC Technology boosts growth plans with funding from Shawbrook

Distributor of specialised electronic components and equipment, APC Technology Group, secured an Asset Based Lending package from Shawbrook to boost its cashflow and accelerate its expansion plans.

At a glance

  • APC Technology is a provider of bespoke technology components, systems and services for avionics, space, medical, energy, automotive and the defence sectors.
  • Building upon a strong track record of double-digit growth, APC wanted a facility that delivered additional headroom to support their strategic growth plans while providing additional flexibility, reduced administrative burden, and reduced overall borrowing cost.
  • Shawbrook delivered a borrowing base facility and cashflow package that supported business resilience and provided the headroom for APC to continue expansion. The borrowing base greatly reduced reporting requirements vis-à-vis a traditional Confidential Invoice Discounting facility and gave the business certainty of funding throughout the month.

March 2024 – Distributor of specialised electronic components and equipment, APC Technology Group, has secured a new funding facility from Shawbrook to boost its cashflow and accelerate future growth plans.

The Rochester based and private equity backed business is a leading provider of complex electronic components and systems, test equipment, and sourcing solutions to its core markets in defence, space, medical, energy, automotive and avionics, all of which have rebounded strongly following covid. To support this unprecedented growth,  APC Technology Group was keen to boost its resilience and release additional cashflow that would enable it to continue with its growth trajectory.

Backed by Harwood Private Equity, APC Technology Group approached Shawbrook who had supported the private equity house with funding solutions in the past. The team at Shawbrook arranged a bespoke Asset Based Lending package that combined a borrowing base facility alongside a cashflow loan.

Shawbrook was introduced by Harwood and we quickly felt that the team there understood our priorities. Dan and the team structured a flexible solution that, not only provided cashflow to support our growth plans, it also included a revolving borrowing base facility which reduced the administration we’d normally complete with Confidential Invoice Discounting.

Art Russell Chief Financial Officer of APC Technology Group

Art Russel added, "We have experienced strong growth across all our product lines following covid, in addition to the introduction of test equipment sales which have taken off, which necessitates increased working capital capacity and flexibility to support the strategic growth plans of the business."

 

James Agnew, Partner at Harwood Private Equity said:
“We have worked with the team at Shawbrook on a number of transactions now and the one element that differentiates the business for us is that they take a step back and look at the bigger picture to provide a truly bespoke option. The deal for APC is a classic example with the current requirement and the flexible revolving borrowing base which we believe will take APC to the next stage of growth.”

 

Daniel Martin, Senior Director at Shawbrook, said:
“We’ve worked with Harwood for quite a few years now and they have an impressive portfolio of innovative businesses. When approached about APC, we were keen to find a solution that delivered on all accounts and looked at our broad range of facilities to create a package that incorporated both  flexibility and certainty.

“We look forward to seeing APC Technology progress its business plans as it continues to support clients with their specialist electronic requirements.” 

 

Claire Williams at Brachers LLP advised for APC Technology Group. Anna Ronson at Shoosmiths LLP provided legal counsel for Shawbrook and Rob Dawes at MHA Moore & Smalley provided Financial Due Diligence. 

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