Capital injection to Albemarle and Bond
Eli J. Appelbaum is Managing Director of Investment & Finance at Gordon Brothers Europe. Gordon Brothers invests their private capital to provide asset-backed financing in circumstances where traditional credit is more challenging to access.
What was your role in the deal?
As head of the Investment & Finance practice, I originated and structured the deal. I sit on the board of Gordon Brothers Japan, a joint venue between Gordon Brothers and the Development Bank of Japan, which helped build the relationship with AGC, a Japanese firm.
Gordon Brothers Europe will be offering AGC support following its acquisition of Albemarle & Bond. What does this support involve?
AGC has positive plans for the business going forward and Gordon Brothers is available to support through our full suite of solutions, including our retail inventory management services, and any potential further financing to support future transactions.
It has been noted that this deal provided capital in a non-standard circumstance. What was unusual about it, and how can it still be used to facilitate further expansion?
A number of reasons make this transaction unusual. The pawn-broking sector is under commercial and regulatory pressure and as a result is out of favour with traditional financiers. It has been through a boom and bust cyclean d many businesses in the sector have suffered from anaemic growth with the decline of gold prices. Albemarle & Bond has undergone a recent restructuring c.2 years ago – prior to its sale to AGC. Given these reasons, the business required an entrepreneurial approach from the sponsor, and a financing partner that is comfortable with the challenges that the sector faces and with a high degree of conviction in its position. Given our depth of asset expertise and ability to assess the full value of collateral - Gordon Brothers and AGC were well suited partners for this transaction. The capital will allow Albemarle & Bond to stabilise the company’s working capital and provide capital for their future plans for the business.
As well as capital, what other resources do Gordon Brothers provide for clients?
Gordon Brothers is the world’s leading asset valuation and advisory firm, conducting over $70 billion worth of transactions and appraisals annually. We work with both corporate clients and creditors to maximise the value of non-performing assets on the balance sheet. These solutions are all at the disposal of our clients should they become necessary.
Is there anything else you would like to add?
Gordon Brothers continues to grow its Investment & Finance practice across Europe and we look forward to completing more transactions with companies requiring capital beyond the traditional
financing sources. To view more Gordon Brothers featured transactions, please visit www.gordonbrotherseurope.com.