Cynergy Bank provides a £10m funding line to First Circle Group
By Joy Dumasia
First Circle Group, a fast-emerging business specialising in manufacturing rigid plastic containers, has received a £10m plant and machinery loan and receivables funding facility from Cynergy Bank. This is a new client to the Asset Based Lending (ABL) division of Cynergy Bank, which launched in September. Headquartered in Newport Pagnell, First Circle Group operates five sites across the UK and Ireland, supplying over 700 million rigid plastics containers per annum.
The £10m facilities will support the Group’s growth ambitions, allowing them to buy new machinery and enhance their in-house capabilities to service several sectors, including household, personal care, home care, agrochemical, automotive, etc. Annual turnover is expected to rise from £70m currently to more than £100m.
Cynergy Bank worked closely with the First Circle team, their owners Greybull Capital, and their corporate advisers AlixPartners to structure the facilities. Bermans and Forsters provided excellent legal support, and Hilco Valuation Services the appraisals.
Chris Phelan, Chief Executive Officer, First Circle, said: “Following a successful turnaround since the acquisition in late 2019 by Greybull Capital, the business has been able to invest in new technologies and machinery supporting its long-term growth plans. We’re now delighted to have selected Cynergy Bank as our financing partner in a move which will further enhance our growth plans.”
Paul Fraser, Executive Director at Cynergy Bank, said: “First Circle Packaging is a fantastic business; they are pioneers in the plastics industry both in the use of recycled raw material and in creating recyclable products. They provide our key milk containers that most people will have in our fridges and are focusing now on also expanding their expertise to a much wider set of products in new markets. We are proud to have provided this £10m funding facility for this UK manufacturer to help drive their progressive investment, growth and development.”
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