NatWest funds share buy back for Bath print business

Bath, February 2009 - A Bath-based print business Ralph Allen Press Ltd has undergone a share buy back thanks to a funding package from its banking partner NatWest.

Ralph Allen was established in 1925 as a family business and has been run as such ever since. The business was purchased by Brian Neathey in 1982, and handed to second generation son Stuart in 2002, when he was sold the shareholding. The deal means that Stuart's business partner Jason Hindle, who was previously a minority shareholder, has become a 100 per cent shareholder in the business. The business today employs 19 staff and produces a range of print material for local organisations including local universities and NHS trusts.

NatWest Relationship Manager Rich McNairn introduced his colleague Martin Fackrell from the bank's Structured Debt Solutions team specialising in leveraged finance and the team worked with colleagues in the RBS Group, which NatWest is part of, including RBS Invoice Finance who provided £150K invoice discounting facility to fund working capital and Lombard, who provided a £500K structured finance solution to fund the share buyback.

Ralph Allen has enjoyed a long standing relationship with NatWest, having worked with the bank since it was set up 83 years ago. The bank's asset finance division, Lombard, had also been previously connected with the business, and funded a new state of the art Ryobi four colour printing press last year.

Jason Hindle, Managing Director, Ralph Allen said:

"Despite the changing economic climate, we need to think long term and I am delighted to have the opportunity to take full ownership of what is a successful business. I am grateful to the RBS team, who worked closely with us to understand our business and support our objectives, while also taking us through a robust due diligence process."

Richard McNairn, Relationship Manager, Commercial Banking, Bath added:

"We have explored together the company's strategy and ongoing banking requirements in order to provide a bespoke finance package to aid the share purchase and provide ongoing working capital and I wish Jason and the team every success in the future. RBS and its subsidiary NatWest remains focused on providing support through total financial solutions to SMEs in the current market. Our commitment to the government to meet our SME commitments and drive an extra £3bn of lending to SMEs in 2009 remains strong. Lending for SMEs is up 10% this year and many businesses are continuing to operate with strong balances."

In addition to the £1m EFG loan from RBS, the bank's invoice finance division, RBSIF, has put in place a £400,000 facility to support Auralis's working capital requirements.

Ken Brown, director of healthcare, RBS Business & Commercial Banking, Scotland, said:

"Auralis has the vision and opportunity to replicate the success of its first product through further development activities and to realise the firm's significant potential for growth. The business already has strong revenue streams underpinned by long term supply contracts, and it now has the capital necessary to develop much needed products and accelerate its business plan over the course of the next few years."

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