Member Article

Plastics group secures funding deal

Manchester-based Vita Group has secured a £29.5m funding deal.

The firm, which makes foam and plastics at its plant in Middleton, has arranged the credit facility with the Manchester Trinity Way branch of Handelsbanken.

The deal replaces the current funding arrangements in place for the group, which has 17 separate business divisions.

Chris King, group treasurer of the Vita Group, said: “After operating with a variety of different banks across the region for many years, we were keen to build a long-term relationship with a single reputable provider who was aligned with our core strategy and able to deliver on all our complex operational requirements.

“The team at Middleton also saw real advantages in the quality of local personalised service provided by the team, which made Handelsbanken the obvious choice of banking partner.

“The move will bring us improved efficiencies and significant cost benefits.”

Vita was set up more than 60 years ago as British Vita. It makes foam and specialist plastics for a range of products, including furniture and for the transport sector. It employs 3,700 people across 55 sites in 20 countries and total group revenues stand at around £1bn.

John Burke, branch manager at Handelsbanken, said: “We are delighted to have built this relationship with Vita Group, which we see as a major endorsement of the unique model of banking offered by Handelsbanken and highlights our growing profile in the UK market.

“It demonstrates our ability to provide a full range of banking services to businesses of all sizes and complexities. We ensured our local offering was tailored to meet Vita’s operational requirements whilst providing flexibility for its plans.”

Handelsbanken was advised by Nigel Dale, in the Manchester office of law firm Eversheds.

Vita was advised by Cleary Gottlieb Steen & Hamilton.

This was posted in Bdaily's Members' News section by Simon Malia .