Clydesdale backs $75m refinancing of Volex

01/06/2011

Volex Group plc, the global provider of customised electrical and optical interconnect solutions, has undergone a $75 million refinancing backed by Clydesdale Bank Corporate & Structured Finance.

Clydesdale is one of three banks which are each providing $25 million. The funding will replace Volex’s existing $60 million facilities which are due to expire in 2012 and provide additional resources to support its further growth.

Established in 1892 and based in London, Volex is a leading provider of interconnect solutions and power products, servicing the telecommunications, data-centre, industrial, consumer and healthcare sectors. It operates nine manufacturing locations around the globe, with strong capabilities in product development, manufacturing and testing. Volex also runs over 20 sales and support offices located strategically in Asia, North and South America, and Europe.

The group, which is listed on the main London stock exchange, was the best performing stock on the FTSE All Share index in 2010.

Andrew Cherry, Volex’s group finance director, said: "Volex conducted a thorough review of potential banking partners and at an early stage identified Clydesdale as an obvious constituent of our ‘dream team’ banking club. Their responsiveness and understanding of management's ambitions for the business were clear differentiators as was their no-nonsense style of working. With Clydesdale we believe we have forged the foundations for a long-term relationship that will help underpin Volex's ongoing growth and profitability".

The Clydesdale Bank team was led by David Hayers, director with Corporate & Structured Finance in London, and included associate director Jonathan Baxandall. David Hayers said: “Volex represents an excellent opportunity to back a highly successful business which benefits from a market-leading position, long-standing customer relationships and a strong and proven management team.

“Management is committed to significantly growing the business in the next five years. The new facility will help provide increased working capital to fund the strong organic growth and to allow the company to make targeted acquisitions if and when opportunities arise.”