SALFORD, England (April 27, 2011)–Luxfer Group, international manufacturer of high-pressure gas cylinders and high-performance materials and the parent company of Luxfer Gas Cylinders, has secured a £110-million refinancing package from a consortium of three banks, plus Pricoa (Prudential Company of America).
Yorkshire Bank Corporate and Structured Finance is investing alongside Lloyds Bank Corporate Markets and Bank of America.
Luxfer, which is headquartered in Salford, has in recent years focused its business development on growth markets such as environmental controls, advanced healthcare technology and the protection of people and property. This new package will provide funding for further growth while replacing Luxfer’s existing facilities.
The deal includes a $65-million private placement with Pricoa, which will enable an early redemption of loan notes that were due in early 2012.
Stephen Williams, Luxfer Group Finance Director, said: “We already have a good established relationship with Bank of America and we were keen to ensure we found the right UK partners to support our growth and strategy. We are delighted to be working with Lloyds Bank Corporate Markets and Yorkshire Bank in that regard.”
Luxfer employs approximately 1,600 people in more than 25 countries and operates 16 manufacturing plants in the UK, USA, France, Czech Republic, Canada and China, as well as joint ventures in Japan and India. Its UK manufacturing sites are in Manchester, Nottingham and Worcester. In the USA, the company operates manufacturing facilities in California, Illinois, New Jersey and North Carolina.
Paul Foster, Deputy Head of Lloyds Bank Corporate Markets in Manchester, commented: “We are delighted to have been able to support Luxfer with a flexible funding package enabling them not only to continue with their growth strategy in both existing UK and international markets, but also to open up new developing markets. Our support lays the foundations for further strong performance in the coming years. This deal is further evidence that there is finance available for strong local businesses with the right strategies for growth.”
The Yorkshire Bank team was led by Owen Malton, Director with Corporate & Structured Finance in Manchester. He said: “We have been talking to the management team for some time and have gained an excellent understanding of the key drivers of this complex international group and have built up a good relationship with the management team. Luxfer’s technology and expertise give it a competitive advantage in its chosen markets. The business has performed consistently over the past few years and has protected itself from the effects of the recession by its international operations and focus on new product development for the growing environmental, healthcare and protection sectors. This funding package will provide it with the resources to support its ongoing growth.”
Luxfer works closely with customers to develop materials and products for demanding applications. It manufactures products in aluminium, magnesium, titanium, carbon composites and chemically-derived compounds of zirconium. Important applications for Luxfer’s products include:
- Improving fuel economy by light-weighting aircraft, trucks, buses, trains and cars;
- Controlling emissions from road vehicles, converting noxious gases into harmless ones;
- Removing toxic metals from drinking water and industrial effluent;
- Improving patient mobility and quality of life with lightweight, portable medical equipment; and
- Protecting people and equipment in conflict and emergency situations.
In addition to Luxfer Gas Cylinders, Luxfer Group companies include Magnesium Elektron, MEL Chemicals and Superform.