Dains advises on Encasement’s acquisition with funding provided by Caple
Peterborough-based architectural and decorative casing solutions specialist Encasement Limited has acquired Pendock as part of its strategy to expand into new market sectors and increase its UK-based manufacturing facilities. Telford-based Pendock manufactures and supplies a comprehensive range of pipe boxing, column casings, encasement products and washroom cubicles and complements Encasement’s product range.
Encasement was formed in 2007 and manufactures and supplies casing solutions to public sector and private business in sectors including residential, retail, commercial and education.
Funding for the acquisition comprised a £1.85million cash-flow loan facilitated by Caple alongside an increased working capital facility provided by IGF. The combined financing package both supports the initial acquisition and provides the cash headroom to grow the combined business over the coming years.
The difference we made
Rob Wilson, Senior Manager of Dains Corporate Finance said “We initially performed financial due diligence on Pendock for the directors of Encasement in order to develop the detailed understanding of the acquisition target required to identify the key risks of the transaction and ensure the appropriate price was paid. We worked closely with Encasement to develop a funding structure which supported the acquisition and the on-going working capital requirements of the business.”
“Having worked with Caple twice previously we could see that their unsecured long-term cash flow loan product would work well alongside an invoice discounting facility. We worked closely with Caple and Encasement to put together a comprehensive funding application which supported the acquisition of Pendock as well as the future organic growth plans.”
What our client said
Martin Taylor, Managing Director of Encasement, said “Throughout the acquisition and due diligence process, the service and support we received from Dains, and in particular Rob Wilson, was exceptional. While the focus was clearly on securing and finalising the deal to the satisfaction of all parties, Dains’ level of commitment and the manner in which they conducted the process was very effective and highly professional at all times. Even though it required a considerable amount of out-of-hours working to maintain the momentum, nothing was too much trouble and we achieved an excellent result with Rob’s specialist skills and expert assistance.”
What Caple said
Dominic Buch, Managing Partner of Caple International, said "It is great to complete our third transaction with Dains and support another of their clients with long-term unsecured funding. As a key Partner in the Midlands Rob Wilson and his team have an excellent knowledge of our process, ensuring an efficient and satisfactory outcome for their clients."