Landsbanki Commercial Finance, the global asset based lender with an operation in Birmingham, has funded the restructuring and expansion plans of Schreiber & Keilwerth, the German musical instrument manufacturer.
The business makes woodwind instruments under its own and other brands, and is part of the Music Group, a company backed by private equity house Rutland Partners.
Schreiber is currently involved in a restructuring that will see part of its operation moved from West to East Germany.
The new funding line will help back the move as well as fund expansion including a new brass instruments business.
The deal was led by Neil Kindness, a director of Landsbanki Commercial Finance in Birmingham.
Mr Kindness said: "The transaction was ideally suited to us. It needed a funder which understood the intricacies of putting a deal together under German law, as well as one that had a relationship with Rutland Partners."
Alan Jamieson, chief executive of the Music Group, said: "It was clear to us from the start that an asset-based facility was right for us." Tim Chapman, head of the lending and advisory group at Henry Butcher, helped to value Schreiber's production machinery, inventory and raw materials.
LCF received legal advice from Andrew Knight at Speechly Bircham.