One of the UK’s largest manufacturers of paracetamol-based products is set to significantly increase productivity after securing a £4.7million funding deal.
M&A Pharmachem Ltd manufactures pharmaceuticals and medical devices for medical staff around the globe to prescribe and use across the healthcare sector.
The business, based in Bolton, was established 40 years ago and now employs 150 staff. After experiencing a setback with their bankers, M&A Pharmachem looked to their advisors, Barlow Andrews Chartered Accountants, who worked alongside North West based finance firm, PMD Business Finance, to secure the funding for four new packaging machines.
Gerard Pessagno, managing director of M&A Pharmachem Ltd, said: “Over the last two years we have invested over £5million on our factory plant and equipment, specifically in the manufacturing, packing and ancillary service areas.
“The majority of our projects have been self-financed, but some have been backed privately. This is because the UK high street banks have been far too slow in making decisions and on this occasion, we were let down at the eleventh hour by the bank.
“Our accountants, Barlow Andrews, introduced us to PMD Business Finance and within a couple of weeks, the finance was in place. This meant we could drive forward our ambitious expansion plans to revitalise our offering. Our previous packaging machines were 20 years old and were restricted in the amounts they could produce.
“However, these new machines are set to increase our current capacity significantly. It is an exciting development for us as a company, because it will enable us to tender for different types of business and will also open up the possibility of further export markets.”
Oldham-based PMD Business Finance is one of the biggest independent brokers in the UK. Over the last eight years, PMD has worked with businesses up and down the country, offering alternative finance solutions to high street banks.
Peter Dobson, managing director of PMD, said: “Raising awareness of alternative finance is very important to us as a firm. M&A Pharmachem’s story of being let down at the last minute is all too familiar to us. It is always disappointing to hear about businesses essentially being forced to give up on their plans for expansion and growth because they have been told ‘no’ by the banks. There are other options available that are totally flexible, and that is where we step in.”
Tom Brown, head of direct finance at PMD, added: “There have been many stories in the media about the importance of British manufacturing recently and we are proud to support one of the UK’s largest pharmaceutical firms which is flying the flag for British manufacturing. Not only is M&A Pharmachem Ltd an industry leader, it is also right on our doorstep and it has always been important to us as a firm to support fellow North West businesses.”
Phil Riding, of Barlow Andrews, commented “Dealing with PMD was like a breath of fresh air with their ‘can do’ attitude and prompt turnaround of the funding package for the new equipment at very competitive rates. We look forward to continuing to work with them for this client and also other clients seeking alternatives to traditional bank lending.”