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Shropshire firm wraps up sale.

A Shropshire aluminium foil firm has bought a Bridgenorth-based operation in a deal advised locally by Cobbetts.

The Birmingham office of the law firm advised aluminium-rolling and recycling business Novelis on the sale of its confectionary foil packaging business in Bridgnorth to Discovery Foils.

The sale will see approximately 105 employees transferring to Discovery Foils, along with assets of the business.

Under a separate agreement, Novelis will continue to supply foil to the operation.

The acquired business produces multicoloured printed foil packaging for confectionery products.

The team at Cobbetts comprised corporate director Nick Dawson, real estate director Julie Newell and commercial director Nigel Gardner.

Birmingham-based corporate partner Mark Gibson, who led the team for Cobbetts, said: "Multicolour printing is not a core activity for Novelis, but it represents a good strategic fit for Discovery Foils.

"By selling on the business as opposed to simply closing it, Novelis has safeguarded over 100 jobs.

''Despite the complex structure of the deal, we successfully concluded the transaction within a very tight timeframe."

Discovery Foils financed the acquisition with the support of invoice and asset-based lender Venture Finance.

A funding package approaching pounds 3 million was provided, including invoice discounting, plant and machinery and cashflow term loans.

Teresa Geraghty, business development manager for the Midlands at Venture Finance, said: "We wasted no time in quickly getting to grips with Discovery Foils' funding requirements to buy the business from Novelis and save 105 jobs in the region."
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Publication:The Birmingham Post (England)
Date:Mar 3, 2011
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