Acquisition Financing


Headquartered in Mebane, North Carolina, privately held ARCA is a global leader in cash automation devices. ARCA’s products span cash dispensers and cash recyclers used by banks, credit unions and retailers as well as coin products, check scanners and proprietary software to integrate its devices with reporting applications.

In late 2014, ARCA’s planned acquisition of CTS Group, an Italian provider of cash recyclers and check scanners, was challenged by an inability to secure a proper cross-border financing package to fulfill acquisition debt needs and the structuring requirements of the prospective Italian subsidiaries. ARCA’s advisor, Deloitte Corporate Finance, sought a European lender familiar with the Italian market and with well-established capabilities in both Europe and in the U.S. It reached out to Pricoa Capital Group, whom they knew from past transactional experience, to be a one-stop provider of flexible capital with sizable lending capacity and a strong presence across the UK and European market, including a meaningful portfolio in Italy and a recently established office in Milan.

Pricoa structured a one-stop financing package in which it would provide the necessary senior debt alongside a revolver. In addition, Pricoa partnered with another investor to provide a subordinated debt tranche necessary to give the balance sheet an infusion of more patient, junior capital. With terms agreed, the transaction closed on December 19, approximately one month after Pricoa initially expressed commercial interest in the transaction.

Faced with a pressing deadline to close a deal important to its long-term strategic goals, ARCA chose Pricoa as its lead lender both for the certainty of its cross-border execution capabilities, deep knowledge of the Italian market, and for its ability to underwrite multiple components of the financing.