Equity And Debt Package Will Fuel Growth At Established Business
By David Shirt
One of Sheffield’s longest established companies, Fox Wire, has secured an equity and debt finance package which allows it to move forward with its growth strategy- thanks to support from the Corporate team at law firm Irwin Mitchell.
Tracing its roots back to the 1842, Fox Wire is the UKs largest manufacturer of engineering wires in stainless steel, nickel alloys, copper, brass and aluminium. It exports into Europe from its UK base in Stocksbridge, Sheffield, and through its wholly owned German subsidiary, Fox Wire GmbH.
The business has secured a £1m equity investment from Finance Yorkshire, alongside £3.2m debt and working capital facilities from HSBC, which will now allow Fox Wire to execute its growth strategy.
Fox Wire now plans to invest in working capital and production facilities to push forward with a strategy of becoming one of Europe’s leading specialist wire producers, pushing deeper into technically advanced markets including aerospace and energy as well as strengthening its existing position in the Oil and Gas sectors.
The Corporate team of Irwin Mitchell’s Sheffield offices, led by Andrea Cropley and Matt Ainsworth, provided legal advice to Fox Wire and the management team on the new equity and debt funding arrangements.
Irwin Mitchell Partner Matt Ainsworth said: “The expansion of businesses, such as Fox Wire, is essential for growth in our region. We are sure that with the backing and expertise of Finance Yorkshire the management team will take the business from strength to strength.”
Paul Gower, Finance Yorkshire Investment Director said; “It is often quoted that equity investors should back management teams not businesses as it is management teams that drive businesses forward. Fox Wire’s team has ambition and commitment investing a significant amount alongside Finance Yorkshire. In addition we have further strengthened the team through introducing former Sheffield Forgemasters Chairman and Chief Executive David Fletcher as non-executive Chairman.”
As part of the deal, director and major shareholder, Oliver Baker has made a further investment into the business and Commercial Manager Jonathan Rigby and Operation Manager Shaun Stancilffe have also invested and join the board as Managing Director and Operations Director respectively. The board is also strengthened by the appointment of David Fletcher (ex-Chairman and Chief Executive of Sheffield Forgemasters) as non-executive Chairman.
Oliver Baker said: “This is a major step forward for the business and we’re excited by the opportunity to put Fox Wire back on the map. We have a fantastic team and brand name and now the necessary resources to succeed.”
Castle Square Corporate Finance provided corporate finance advice to Fox Wire on the transaction.
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