CME Limited, a Somerset-based automation and packaging machinery specialists, has secured a “significant” commercial mortgage from Allica Bank.

It says the funding will play a crucial role in its rapid expansion plans, having grown at an average rate of 20% in recent years due to securing significant new contracts within the pharmaceutical, food and beverage and legal cannabis sectors in more than 130 countries.

The funding will allow CME – which employs 120 people, primarily based in its Somerset headquarters – to further continue its product development strategy and boost employment in the local area.

The finance has enabled CME’s senior management team to complete a debt-funded management buyout (MBO), purchasing the business from the Mear family, who founded the business in 1983. The deal was brokered by Blaise Commercial Finance, the credit broker firm specialising in commercial banking and real estate.

Paul Knight, CEO of CME, said: “When approaching other lenders, there seemed to be a ‘one size fits all’ approach, whereas Allica was far more flexible and understanding of us as a business and our financial needs. While other lenders told us we were naïve for even trying to source this deal – Blaise Commercial Finance and Allica made the effort to recognise our potential.”

Julian Stevens, director at Blaise Commercial Finance, added: “While other corporate finance advisers and banks were unable to provide the necessary funding, Allica was transparent and flexible in what they required and was able to work collaboratively with the management team and other stakeholders to complete the deal”

Danny McMurdo, business development manager for the South West at Allica Bank, concluded: “We are delighted that we could support CME with their MBO. They’re a fantastic Somerset business with ambitious growth plans, just the type of business Allica Bank wants to help support, especially when many of the banks are tied up operationally with servicing emergency covid loans. We look forward to watching their business move from strength-to-strength.”

Allica Bank is set to exceed its target of £500 million in committed SME loan offers this year. It recently increased its commercial mortgage maximum loan size from £3 million to £5 million and maximum asset finance loan from £250,000 to £500,000.