Wells Fargo Capital Finance UK, the UK debt-focused arm of US bank Wells Fargo, has provided financing to UK-based aerospace company Arlington Industries.
The financing will be used in facilitating the acquisition of Magal Engineering Group, while also providing additional working capital. The entire facility consists of a loan of £45 million. Arlington’s bank, Shawbrook, has also participated in providing a portion of the debt. Further details could not be determined by press time.
“We were able to provide a bespoke solution that met the financial needs of Arlington, as it has a good, strong balance sheet with solid strong assets, which we could lend against,” Tom Weedall, director for loans origination at Wells Fargo, told PDI.
Weedall added the firm generally looks for strong assets to lend against, though this isn’t always a necessary precursor to extending financing. “It’s always easier if there are strong assets on the balance sheet – in particular, stock, debtors, plant & machinery and property,” he said. In lieu of strong assets, Wells Fargo will seek out balance-sheet items such as recurring revenues to lend against in the case of technology companies.
Arlington specialises in supply-chain integration in the aerospace and automotive industries. It is owned by private equity shop Cartesian Capital Group.