Warrington-based Integrated Engineering Stores Associates Ltd (IESA), a specialist in outsourcing maintenance, repair and operating goods (MRO), has won a ten-year contract with Premier Foods thanks to funding from Royal Bank of Scotland Corporate & Institutional Banking (RBS CIB).
IESA has rapidly become a leading player in the UK's MRO market. Established in 2001 to take over the existing general engineering activities from Caldwells Limited, IESA has developed into an integrated solution for ordering, delivering and maintaining stock levels for large corporates of MRO products. Its turnover has grown to £80 million and it now employs over 180 people.
RBS was able to provide a fully flexible £3.5M asset backed facility to IESA due to its long-standing, ten-year relationship with the firm and its senior management.
For IESA's clients, outsourcing of MRO activities is a means of achieving significant cost out and gains in operational efficiency. According to IESA's own research, for every £1 million spent on MRO there is upwards of 25,000 requisitions, 20,000 purchase orders and 22,000 invoices and credits to process. Therefore, many companies are seeking better efficiencies in the procurement channel for MRO - which represents big opportunities for firms such as IESA.
Andrew Perry, finance director, at IESA, said: "The Royal Bank of Scotland has allowed IESA to take on a significant and exciting business opportunity. The IESA business is readily scaleable because of its early and heavy investment in IT which now represents a key competitive advantage of the business.
"For IESA there is clear upside to the contract with Premier Foods. The deal represents a step change for IESA albeit well within our capability to manage. Once it is imbedded into the Premier Foods business it will mean the firm will become key partners in managing Premier Foods MRO stores' requirements."
Oliver Unett, relationship director North West, RBS CIB, said: "RBS is delighted to help a long-standing customer such as IESA advance its business by dealing with larger clients. This investment in the future of the UK's industry goes to the very core of what the team at RBS CIB is looking to achieve for its clients."