Multinational Mutares acquires Sheffield based firm, ATI, with support from Cynergy Business Finance.
Cynergy Business Finance has provided an £18m funding line to support Mutares with the acquisition of the Sheffield operations of Allegheny Technologies Incorporated (ATI) which will now operate under its new name Special Melted Products Limited (SMP).
SMP, a supplier of forged and machined products, will strengthen Mutares’ Engineering & Technology segment as a new platform acquisition. The inventory and receivables financing Cynergy Business Finance has provided will support the client’s growth, development and further acquisition activity.
Frankfurt-listed, Mutares, consists of a portfolio of European industrial businesses. Sheffield based SMP, a critically important UK business, supplies a wide range of alloy steel, stainless steel and superalloy products into the nuclear, aerospace and energy sectors with an annualised turnover of c£70 million.
Cynergy Business Finance worked closely with the Mutares team and their corporate advisers K3 Advisory to structure the facilities.
Alex Silk, Head of M&A UK, said: “We are delighted to be partnering with Cynergy Business Finance to help fund the bright future of SMP. From the outset, they clearly understood SMP’s key opportunities and challenges, and how Mutares will be helping. They came to the table with a pragmatic funding solution, and we have no doubt that they are the right partner to support the company’s growth.”
Paul Fraser, Executive Director, Cynergy Business Finance commented, “SMP has a firm presence in the Yorkshire area and beyond, given its impressive export track record. The acquisition with Mutares clearly demonstrates how strategically important SMP is within the sector and on an international scale. We look forward to working with both SMP and Mutares in the future.
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