LONDON: 31st May, 2011: GE Capital today announced that it has provided East-Midlands based Fogarty (Filled Products) Limited, with a £9.5 million financing facility. The new facility, which will comprise of invoice discounting, trade finance, inventory and plant & machinery finance, will support Fogarty's future expansion and growth plans and provide additional working capital support to help the company accommodate fluctuations in raw material costs.
Founded over 100 years ago, Fogarty is a market leader in the supply of duvets & pillows to the retail sector. Fogarty's plans to complete a turnaround of the business in 2011 were made difficult by raising commodity prices, which resulted in an increased need for working capital for the business.
Fogarty chose GE Capital after an extensive review of the funding market, and plans to invest some of the funds in their business operations to improve efficiencies as the business and the economy return to growth. The funding will help to protect the jobs of 284 people employed by Fogarty at its single-site operations in Boston, Lincolnshire.
Stewart MacDonald, Managing Director, Fogarty (Filled Products) Limited said: "We are delighted to be working with GE Capital. From the outset, the team took time to understand our business strategy and what our plans for the future are. They came up with an innovative solution that met all of our funding requirements. We were particularly impressed by the deal team's expertise and commitment and we look forward to working with them in the future."
Barry Lee, Regional Director, GE Capital added: "Access to working capital can be an important issue for UK manufacturers as they look to grow and thrive in an increasingly inflationary environment. Having the right financial support in place can address those issues. By working closely with the Fogarty management team we were able to deliver a solution which will help to support the ongoing growth of the business and we look forward to a successful relationship with the Fogarty Team."
KPMG Nottingham acted as advisors to the management team at Fogarty and legal advice was provided to Fogarty's management team by Browne Jacobson Nottingham.
Michael Goodbody
GE Capital EMEA
[email protected]
+44-207-302-6269
+44-7899-808-239