MDW Capital advises PHI Industrial and PPC Insulators to raise substantial acquisition and working capital credit facilities
London, 11 January 2021
MDW Capital (“MDW”) is delighted to announce its 25th completion of 2021, advising PHI Industrial (“PHI”) to arrange acquisition and working capital credit facilities to support its acquisition of the German group, PPC Insulators.
Headquartered in Hessen, Germany, and with a pioneering track record of producing electrical insulators in Europe dating back to 1887, PPC Insulators is a global leader in the manufacture of porcelain insulators, serving global blue-chip energy transmission and distribution customers.
PHI is a specialist investor that creates long-term strategic value by investing in people, brands, products, services and manufacturing facilities. The acquisition of PPC Insulators consolidates PHI’s operations in the porcelain insulator market, having previously acquired LAPP Insulators in July 21. The combined group will be a leading global manufacturer of porcelain insulators for the energy infrastructure industry, and has production plants in Brazil, Germany, Poland, Romania, Slovakia and the US, together with a wider network of sales and distribution operations.
The financing ensures the Group has access to significant capital which will support both management’s and PHI’s ambitions.
Ignacio Hormachea, Director of M&A at PHI commented “the business case and investment opportunity were complex: a cross-border corporate carve-out that required careful articulation to lenders. As former borrowers and investors, the MDW team had considerable experience of both these types of transactions and presented this opportunity perfectly, negotiating with lenders to provide both the amount of debt we sought and attractive commercial terms for the Group. This considerable experience and insight delivered an exceptional result”.
David Culpan, Managing Partner at MDW, remarked “We are really pleased to work with PHI on the successful completion of this cross-border transaction. The deal, our 25th completion of 2021, demonstrates the benefits of working with an advisor who understands a transaction from the perspective of the borrower. Our unrivalled insights into borrowers’ needs, articulating the right credit story and negotiating best terms are delivered with our many years of borrower and investor experience. It is a depth of experience that is unrivalled in the debt advisory market.”