How was the deal introduced?
The company was originally introduced by David Whitehead from The Co-operative Bank in Leeds. We have developed a strong working relationship with the management team and have undertaken multiple funding rounds over the past five years.
What did the company plan to use the initial funds for?
The first round of funding supported the purchase of second-hand manufacturing equipment from the USA which could not easily be funded by traditional asset finance. Subsequent rounds have been used for property improvements and new product development.
What progress has the company made since the first investment?
Over the course of the past four years, the company has grown turnover by £8m, and now generates an EBITDA of over £3m per annum, strengthening the balance sheet by £5m. It has also created three new divisions as part of its investment and diversification.
The Mercia Effect
What have we been able to do for this company as a result of our involvement?
The relationship with the company has strengthened during our journey together. We understand what the management are seeking to achieve and have faith in the bold decisions they have made in diversifying from the historic core bulk chemicals business. Mercia’s support has given Rosehill the additional financial resource needed to take risks and innovate, which mainstream banks had been unwilling to do. As a direct result, the management team continues to engage Mercia’s Investment Team to source new finance when required, as evidenced by the number of loans we have completed for them over the last few years.
“These investments have allowed us to move forward with our plans to increase production capacity, improving efficiency and continue to develop the product range.”Dr Alexander Celik, Rosehill Polymers