Secure Trust Bank has provided a £2.15m (€2.44m) funding package to electronics holdings company NJ Russel to support the acquisition of manufacturer Prima Electronics.
The funding line provided by Secure Trust Bank Commercial Finance consists of invoice discounting, stock, plant and machinery lines. The £2.15m sum will primarily be used to fund the acquisition as well as to boost cash flow.
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Prima Electronics are a Cambridgeshire-based business offering electronic manufacturing services, including printed circuit board assembly and surface mount assembly. Prima Electronics manufacture electronic components and circuit boards.
The two incumbent directors at Prima Electronics, Tony Hall and Mike Rogers, have sold their stake in the business to Nick Russel, who will be heading up the business as chairman. Tony Hall will remain within the business as managing director.
Tony Young, regional sales director at Secure Trust Bank Commercial Finance, said: “We were keen to support Nick’s ambition to develop Prima Electronics into a manufacturing business that can support businesses across the country. The company is currently in an excellent position given its reputation with local businesses and its capability to scale up, and we look forward to seeing its progression over the coming years.”
Russel said: “Prima Electronics is a fantastic business with great prospects for the future. Cambridge is widely known as a hub for tech start-up businesses, most of which will not have the capabilities to produce the electronic components needed to develop products. The plan now is to build on the solid foundations laid by the directors, and expand its services to all areas of the UK.
“Secure Trust Bank Commercial Finance made an excellent partner in this transaction. Working with a lender that has a long-term view was essential, and Secure Trust Bank offered a facility that can be flexible and grow in-line with the business. We look forward to continuing our work with the team as we strive for Prima’s national expansion.”
In October, British Business Investments (BBI), the investment arm of wholesale funder British Business Bank (BBB), injected £25m (€28m) of equity capital into Secure Trust Bank.
