Crédit Agricole Commercial Finance provides funding thrust for Thermal Engineering deal

Thermal Engineering Ltd was founded in 1988 and operates from an assembly and manufacturing facility in Royston, Hertfordshire. The company employs over 200 people and has a turnover of £10 million.

Thermal Engineering manufactures specialist components for the aerospace industry world-wide, primarily for aircraft engines. It is one of only a few organisations with specialist expertise in the field of hot forming complex metal components, along with fabrication of assemblies. The company also manufactures thermal insulation and protection for aircraft and its clients number the leading engine manufacturers and aerospace firms globally.

Last year, Thermal ran into contractual difficulties and the resulting financial losses led to them being bought by specialist turnaround investment company, Privet Capital LLP.  

Ian Slater, of Privet Capital, explains: "We were working to an extremely tight deadline but we approached a number of financiers, looking for the best deal.  We had worked with Crédit Agricole before and found them to be both pragmatic and commercial, so I briefed their Regional Director over the 'phone and he arranged for a team to visit Thermal's premises within a very short timeframe.

"Some of the lenders were unable to meet the timescales to deliver on this transaction but the proposal from Crédit Agricole Commercial Finance was both competitive and met our requirements fully in terms of the rapid speed of delivery demanded.  From start to finish, Crédit Agricole delivered their promises and the deal was completed within four weeks."

Crédit Agricole structured and delivered a £2,500,000 facility, comprising a £2,000,000 confidential invoice discounting line and a £500,000 plant and machinery loan.

The cash injection has made a significant difference to Thermal.  Stephen Ireland, Managing Director, comments: "This is an exciting time for us. We are putting in place the processes and personnel to scale up our production lines for fabricated assemblies in nickel and titanium alloys. This will support our customers who are building key components of the latest generation of regional and military aircraft as well as commercial jets such as the A350 and Boeing 787."

Mr Slater concludes: "We have a good, open relationship and the great thing about working with Crédit Agricole is that there have been no surprises. We plan to make acquisitions in due course and we'll certainly be returning to Crédit Agricole Commercial Finance to talk about the funding for these transactions."