EIB confirms GBP 280 million support for Rolls-Royce during visit to Derby

The European Investment Bank (EIB), has officially agreed to support the research and development of Rolls-Royce aero engines through a GBP 280 million long-term loan. This loan is the largest ever given by Europe’s long-term lending institution to Rolls-Royce for investment in research and development. The EIB-backed loan supports the development of the higher thrust version of the Trent XWB aero-engine.
 
The 7 year EIB loan is one of the largest ever agreed between the European Investment Bank and a UK company. The EIB has provided more than GBP 723 million for investment by Rolls-Royce in the UK in the last decade, as well as supporting research and development by the company elsewhere in Europe.  
 
“The European Investment Bank is committed to supporting long-term investment in research and development across Europe and we are pleased to have helped strengthen manufacturing by Rolls-Royce in Derby over many years. Investment to help develop new engines builds on the unique strengths of Rolls-Royce and will help to ensure that cutting edge skills and engineering techniques build better and more efficient engines for the global airline market,” said Jonathan Taylor, European Investment Bank Vice President today, during a visit to Rolls-Royce’s facility in Derby, UK, which is the production centre for the Trent XWB.
 
Since the beginning of this year, the Trent XWB-84 – the world’s most efficient large aero engine – has been powering the Airbus A350 XWB airliner in commercial service. The forthcoming larger version of the aircraft – the A350 XWB-1000 – will employ a different version of the Trent family, the 97,000lb-thrust Trent XWB-97. The engine is currently undergoing a rigorous test regime as it prepares for first flight later this year and subsequent entry into service on the A350-1000 in 2017.
 
Rolls-Royce employs over 54,000 people and is one of the world’s leading producers of aero engines for large civil aircraft, corporate jets and the defence market. Last year the company invested GBP 1.2 billion in research and development activities.
 
Since 1973 the European Investment Bank has supported industrial investment across the UK through more than GBP 7 billion of loans for research and development by companies including Airbus, Ford, Nissan, Johnson Matthey, Smiths, BMW, GKN and Oxford Instruments. 
 
Last year the European Investment Bank provided a record GBP 6 billion for long-term investment in key infrastructure across the UK, including support for new hospitals, better water and sewerage infrastructure, renewable energy and energy transmission and private sector investment including corporate research and development. 

Angels4Angels donates £2000 to Fredericks Foundation

Cheltenham based Business Angel Syndicate Angels4Angels donates £2000 to Fredericks Foundation

Cheltenham based Business Angel Syndicate Angels4Angels are pleased to announce that they have donated £2000 to the Gloucestershire arm of Fredericks Foundation.

Established in 2001 by Paul Barry-Walsh, a successful entrepreneur in his own right who wanted to help others who aspire to run their own business. Fredericks Foundation provides loans to people who want to set up a new business or maintain or expand an existing business – but could not raise the finance from the banks.

Fredericks operates in 18 areas of the country including Gloucestershire with dedicated client managers on hand to help and support applicants all the way through the process. Support continues through practical advice, networking and links within the local community that can help support and grow new and expanding businesses.

Paul Barry-Walsh, Founder of Fredericks Foundation comments: “At Fredericks, we are very dependent on the invaluable help and support of our Partners and Volunteers. Angels4Angels are great champions of ours and we thank them for their generous donation to our operation in Gloucestershire. Hopefully, some of our successful Clients in the county will need investment from John and his Team in the future; as they grow.”

John Caines, Director – Angels4Angels adds: “We are delighted to support Fredericks. Like our activities they enable people with the entrepreneurial spirit to start their own businesses. Their clients are working at even earlier stage of the life cycle than our investments but they are equally deserving of support.”

Angels4Angels: ‘Purpose Beyond Profit’:

Angels4Angels is a ‘business angel’ syndicate that funds early stage business ventures. As such it has a strong empathy with Fredericks Foundation. By applying best practice from their own experience and published research, the Directors – John Caines and David Cribbin, not only charge no fees to investors but commit their own capital to each investment. They are entirely aligned with Investors & Entrepreneurs by being rewarded only from successful results for all.

Angels4Angels principle of investing alongside a suitable Lead Investor enables experienced people to put something back into both the economy and next generation of business leaders.

The money donated to Fredericks Foundation has been raised from the interest generated by the Angels4Angels Client Account

Clearwater International has advised the management team at leading print supplier York Mailing Group (YMG) on their MBO which has financial backing from Pricoa Capital Group.  

YMG is the UK market leader in the specialist production of retail flyers, media inserts and quality catalogues. In the past two years the Yorkshire based business has seen revenues grow from £69m to more than £100m through acquisitive and organic growth and significant investment in new machinery. This has also resulted in 275 new jobs and more than a 50% increase in earnings to £12m EBITDA.

YMG were one of the first Northern-based businesses to be backed by BGF (Business Growth Fund). BGF and Chris Ingram, who co-founded YMG in 1999, and current MD Mike Newbould will all stay on as minority shareholders. Stephen Goodman will lead the management team who have also become shareholders in the business.

In the last two years YMG have acquired two businesses, The Lettershop Group in 2013 and Go Direct Marketing in 2014, which have added advanced printing capabilities and a new data driven analytics division. These developments have helped the business to win some substantial new contracts and their investment in technology positions them perfectly for continued growth.

Pricoa Capital Group is the international private debt investment business of US based Prudential Financial Inc (NYSE : PRU). Pricoa has been a consistent provider of capital to UK middle market companies for over 30 years.

The Clearwater International team was led by partners Jon Hustler and Mark Taylor, who were supported by  Rob Britton and Mark Gillingham. Gavin Cummings of Browne Jacobson LLP acted for the buyers and management on the acquisition.  

Stephen Goodman, Group MD, YMG, said:

“Chris and Mike have built a well invested business, with excellent customer relationships and a strong sales pipeline. The management team at York Mailing are excited by this opportunity and delighted to have the support of Pricoa Capital Group, Chris, Mike and the BGF.”

Jon Hustler, Partner, Clearwater International, commented: 
“It was important to the new management team that their financing solution allowed them to acquire a significant stake in the business whilst maintaining an appropriate funding structure.

“The business is extremely well placed for continued growth and we wish Stephen and the new management team every success.”

Mark Taylor Debt Advisory Partner at Clearwater International added:
“We arranged bespoke debt capital facilities and follow on funding capabilities with Pricoa Capital Group which will support the ongoing growth of the business, whilst meeting both shareholder and management aspirations.

The transaction highlights the strong interest being shown by alternative funders in quality UK assets."

ertical-align: baseline; font-weight: bold; background: transparent;">The money donated to Fredericks Foundation has been raised from the interest generated by the Angels4Angels Client Account