Smethwick-based weighing machine manufacturer Avery Weigh Tronix has helped to pay off some of the debt to its owner, private equity firm European Capital, after agreeing a £36 million refinancing deal.
The Royal Bank of Scotland's corporate and structured finance team in Birmingham agreed the senior debt package alongside HSBC.
Avery chief executive Andy Caffyn said: "This transaction is really just a redistribution of our existing debt profile.
"The sale of Avery Berkel in September 2006 gave us the opportunity to pay back the majority of the debt to our owner, European Capital. By doing this, we have reduced our interest charges and created an even more sound financial profile."
Given the current banking climate, he said the fact that the bankers had approved the refinancing was "a huge vote of confidence" in the company.
Following completion of the deal, European Capital will continue to hold £10 million of loan notes and preference shares, as well as 61 per cent of the company's common stock.
European Capital managing director Simon Henderson said: "This represents the first significant realisation from the [ten] European Capital One Stop Buyouts completed since inception in 2005 and as such is an important milestone in our development."
The company is now looking to structure Avery as an industrial weighing solutions and services provider.
Avery's industrial products include weighbridges, platform or deck scales, load cells, indicators and supporting software that serve customers in a variety of end markets, including logistics and transportation, food processing, waste management, agriculture and general manufacturing.
The company, which employs over 2,000 people worldwide, has major operations and manufacturing facilities in the UK, United States, Canada, Malaysia, India and China. It also provides aftermarket support services for its weighing products through one of the industry's largest accredited service networks.
