Capral Aluminium have signed a three year financing agreement with GE Commercial Finance (GE) for up to $116 million to support their ongoing business plans.
Robin Freeman, Capral Aluminium’s managing director, said that the facility gives security to execute their plans to return to profitability by 2010 and together with their recently announced fully underwritten rights issue, the funding from GE gives greater certainty for their turnaround plans.
Capral Aluminium offer a wide range of architectural, residential and industrial products through their national distribution network.
Capral Aluminium have five manufacturing sites across Australia, from which they run nine extrusion presses and employ about 1,200 people. They offer a range of products and services, including residential and commercial windows and doors, industrial access systems, and security doors, windows and fire escape systems.
Freeman further related that he was impressed by GE’s commitment in the face of turbulent economic conditions. Capral Aluminium commenced discussions with GE two months ago and found the proposal attractive. The fundamental area for the company was that GE were able to conclude the transaction amid the current uncertainty of the world financial markets, which was a positive sign for them.
Alastair Metcalf, Managing Director, Corporate Financial Services, GE Commercial Finance, stated that GE’s in-depth knowledge of the manufacturing industry meant they saw value in Capral Aluminium’s business and could structure a finance agreement accordingly.
Metcalf added that their experience across the manufacturing sector and understanding of Capral Aluminium’s markets and their assets, gave the insight needed to assess their operations and tailor a facility that meet their business requirements.
Metcalf related that they have also been involved in funding a number of similar turnaround situations. That experience has enabled them to complete the transaction in a short period of time, despite the tough market conditions.