£4m supports latest investment in AGI World Ltd
- £4m initial funding package provides support for AGI investment
- Lombard’s funding further supports new capital expenditure across a range of asset classes
- AGI enhances its return on capital and shareholder value with effective management of its working capital and funding package
AGI World is a world leader in end-to-end packaging solutions, delivering design, digital, localisation and prepress services in addition to packaging, print, plastics, POP and marketing collateral. AGI operates in nine countries in the United States, Europe and Australia.
AGI had a historical relationship with Lombard through IT equipment financing. However when in September 2010, AGI was purchased from Meadwestvaco Corporation (MWV) by Atlas Holdings LLC, a US based Private Investment Company, Lombard was brought in as part of a global Royal Bank of Scotland Group (RBSG) offering to provide finance against all of its UK and Ireland plant and machinery at its four main manufacturing sites.
Paul Buxton, Lombard Relationship Director, explains, "Using AGI's existing global asset base as security for the acquisition, Atlas worked closely with the Lombard and RBS team to create a funding package. Lombard specifically provided an initial £4m facility, comprising of a chattel mortgage loan and an IT funding line as well as an operating lease for assets to be based at its site in Dublin."
The funding would replace existing assets and upgrade other equipment to keep up with the latest technology, with the lease term varying according to the life of the asset. Colin Lammie, AGI Financial Director, explains, "Everything went very smoothly with Lombard and the investment helped us to improve the equipment to faster and more efficient models. It has enabled us to take on different types of business, with an additional important benefit for our parent company with the capital that was freed up by using Lombard to finance the assets."
Lombard's understanding of the company, the industry and the bespoke assets helped produce a finance solution that suited the customer and its needs. Lombard’s expertise in the manufacturing sector gave it, and RBSG, the insight and understanding to not only provide the funding but also to manage the working capital cycles of the business and to enhance the shareholders return on capital.
AGI has since gone on to discuss other business initiatives with Lombard, including further funding into Ireland as well as assessing the financing of a range of other asset classes.
For more information about how Lombard could help your business grow, please call 0800 028 7164. Type Talk 18001 0800 028 7164.
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