JRJ Group, TomsCapital, and 76 West Holdings, today announced the acquisition of Demica—a global, market-leading provider of sophisticated working capital solutions—from the J.M. Huber Corporation.

Demica

Demica provides bespoke working capital solutions to a wide range of major financial institutions, corporates and boutique clients. They are an expert in trade receivables securitisation, supply chain finance and invoice discounting, using their advanced technology and service platform capabilities to address some of the most complex trade receivables and supply chain programmes. Demica is a critical partner for funders and borrowers within the working capital finance arena. Demica’s expertise and services are sought by an increasingly diverse set of constituencies – including multi-national corporations, export-oriented SMEs, private equity sponsors and leading banks.

Growing complexities of global trade

Reflecting the growing complexity of global trade patterns and supply chains, both small and large businesses are increasingly seeking more sophisticated and more flexible working capital solutions. The Press Release states that, “Having already achieved a position as a key participant within the working capital ecosystem, Demica will now also benefit from the knowledge, experience and resources of the new consortium of investors, who have a successful track record of building and managing businesses in the financial services industry, and will continue to advance and expand the value it can provide to clients.”

Investor comments

Joanna Nader, Partner, and Chief Investment Officer, of JRJ Group, said: 

• “As the pattern of global trade, and the operating environment for business, grows in complexity, access to intelligent working capital solutions and tools becomes ever more critical, for both funders and borrowers.”
• “Together with TomsCapital and 76 West Holdings, JRJ Group looks forward to partnering with CEO Phillip Kerle, and the Demica team. We are convinced that substantial growth opportunities exist within the working capital finance segment, with many needs still inadequately met or underserved. As long-term investors, we are excited to be able to work with Demica to solidify and enhance its strong position in the marketplace, and to participate in the next stage of the Company’s development.”

Phillip Kerle, who will remain Chief Executive Officer of Demica, said:

• “We are pleased to partner with JRJ Group, TomsCapital, and 76 West Holdings. In addition to in-depth operational knowledge of the financial services industry, JRJ Group, TomsCapital and 76 West Holdings provide access to new capital to further strengthen and expand Demica’s product and service offering to existing and prospective clients. Certainly, the investment attests to the authoritative position that Demica commands in the receivables finance market.
• All of Demica’s employees are expected to remain with the company.
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CTMfile take: Being owned by JM Huber Corporation, whose core business is engineered materials, never truly worked as shown by the tensions revealed in the Press Release and Kerle’s comments. It is not surprising that private equity firms have finally got their hands on Demica who have a really innovative technology platform and operate in the fastest growth segment in corporate finance. Expect Demica to become a much more active player in the receivables finance market, which can only be good news for corporate treasurers.