UK-based EVTEC has successfully secured a £7.4 million multi-asset facility from Cynergy Business Finance (CBF) to bolster its position in the automobile aluminium parts casting sector. This funding will fortify EVTEC's recent acquisition of JVM Castings, a move aimed at expanding its service offerings in the aluminium die-casting domain. This development underscores EVTEC's commitment to growth and diversification within the evolving landscape of hybrid and electric vehicles.
Established in 2021 and headquartered in Coventry, EVTEC has swiftly become a key player in the production of intricate, lightweight aluminium die-cast components and assemblies. The company caters to renowned Original Equipment Manufacturers (OEMs) globally, boasting an impressive clientele that includes industry giants such as Jaguar Land Rover, Ford, and Aston Martin.
JVM Castings Acquisition
JVM Castings, a venerable entity founded in 1929 in Worcester, has long been synonymous with world-class aluminium die-casting manufacturing. The acquisition is poised to enhance EVTEC's capabilities, adding value to its end-to-end services, which encompass design, project management, machining, assembly, and heat treatment. This strategic move aligns with EVTEC's overarching plan to acquire tier-1 automotive suppliers, positioning itself for a seamless transition into the hybrid and electric vehicle sector.
Financial Facilitation
To facilitate this growth trajectory, EVTEC collaborated with TSF Finance and CBF to structure a £7.4 million multi-asset facility. Comprising a £3.5 million invoice financing facility and a £3.9 million plant and machinery (P&M) facility, this funding empowers EVTEC to fortify its position and address its substantial order book, currently valued at over £700 million for the next eight years.
The Chairman of EVTEC, David Roberts, narrated: "In the last two years, we have already established ourselves as a leader in the aluminium die casting industry, and this latest acquisition of JVM will help us to further bolster this position. As our impressive order book of over £700m continues to expand, JVM will be crucial in providing the additional capacity needed to deliver on this.
"By working closely with Luke and the CBF team, we were able to agree on a flexible, multi-asset structure that will ensure the longevity of the acquisition. With a strong pipeline of new customers, we remain in a strong position to continue growing at a group level," Roberts declared.
EVTEC's strategic acquisition of JVM Castings reflects a forward-thinking approach in the dynamic aluminium industry. This latest development not only augments their production capabilities but also solidifies their role as a key player in the ever-evolving automotive landscape.
The Corporate Sales Director at Cynergy Business Finance, Luke Fitzsimmons, pointed out: "Having already achieved significant growth in a relatively short space of time, this latest acquisition for EVTEC will help to further consolidate its leading positioning in the automotive sector."
"We were able to work closely with David and JVM's existing management team to build a multi-asset facility that catered to EVTEC's specific needs in completing the acquisition. With the transaction now complete, I look forward to seeing both EVTEC and JVM continue to grow and serve even more customers," Luke added.
In conclusion, EVTEC's latest move, supported by Cynergy Business Finance, strengthens its financial position, supporting the company strategically in the competitive aluminium car parts manufacturing sectors. The acquisition of JVM Castings stands as a testament to EVTEC's commitment to excellence and innovation in the face of an evolving industry landscape.
If you are intrigued to learn more about the use of aluminium in the automobile sector, please have a look at AL Circle's special report, Future of Aluminium in the Transportation Sector.
Responses
