£9.2m MBO for Peterlee battery manufacturer to boost expansion plans

Alexander Technologies Europe Ltd (ATEL) has been acquired in a transaction part-funded under a £9.2m unitranche facility provided by Shard Credit Partners.

County Durham-based battery manufacturer ATEL will use this funding to support growth, expansion and development, whilst working closely with its blue-chip customers through the design and manufacture of rechargeable battery packs and equipment.

ATEL sells its products both in the UK and internationally, with a focus in North America and Europe.

Founded over 40 years ago, the company has been acquired from US-based private equity house Woodside Capital Partners.

Michael Shirley, CEO of ATEL, said: “The team is very excited to begin the next chapter in the history of ATEL. This partnership will allow Alexander to extend its strong, double-digit growth achieved over the last three years and combine its recently awarded ISO 13485 quality certification with the new development plans in the North East.

“We are fortunate to have a highly specialised team with a proven track record and this combination helps to solidify the company’s future as a top designer and manufacturer of portable power.”

In addition to providing initial acquisition funding for the MBO, the facility also includes a £1m backstop guarantee and funding line in support of a development capital investment programme.

This will facilitate the move into a new, state-of-the-art manufacturing and warehouse premises and the creation of a meaningful number of new jobs at ATEL’s main site in Peterlee.

The planning and investment in plant and machinery is currently underway and is set to increase manufacturing capacity.

Legal advice to Shard Credit Partners was provided by Alison Davidson-Cox and Sophie Denton from Gateley, led by Senior Banking Partner Andrew Madden.

Woodside Capital Partners was advised by US-based investment banking firm SSG Capital Advisors, alongside European Saxenhammer & Co. Legal advice was provided by Ward Hadaway’s Paul Christian and Kate McLean, along with Muckle LLP.

Shard Credit Partners was advised by a team from Ryecroft Glenton (RG) Corporate Finance led by partner and head of corporate finance Carl Swansbury, supported by Alex Simpson and Chris Black.

Tax advice was provided by RG’s Simon Whiteside, Simon Hopwood and Jon Routledge with Financial Due Diligence delivered by RG’s Grahame Maughan and Andrew Cameron.