Cambridge Savings Bank (CSB), a full-service mutual bank with a customer-first approach and more than $5 billion in assets, announced that its Commercial Lending team offered a lending solution to support the growth of LAB Medical Manufacturing with acquisition financing for a new manufacturing facility in South Carolina. Headquartered in Billerica, Massachusetts, LAB Medical is a device manufacturer that produces precision surgical equipment for multibillion dollar organizations.
Due to heightened customer demand, LAB Medical was looking to expand their production capacity through the acquisition of an existing manufacturing facility and machinery & equipment.
Given the specific building requirements the new property had to meet, LAB Medical broadened their search nationwide to find a sufficient space and identified a facility in South Carolina that offered the necessary space, manufacturing equipment and skilled workforce to support the company’s continued growth.
LAB Medical has been a CSB customer for over 10 years and the Bank made it their priority to provide guidance to their client throughout the pandemic, despite the unprecedented challenges in financing a new property. Starting with a PPP loan, CSB found innovative lending solutions for LAB Medical to help them finance their expansion. The Bank navigated an evolving due diligence process to ensure they were in a good position to advocate on behalf of this long-term client.
“Over the years, Cambridge Savings Bank has honored their relationship-centric approach and commitment to us time and time again through expert guidance, creative financial solutions and unwavering support.” said Leon Bester Sr., Owner and CEO of LAB Medical. “The milestones that our company has been able to achieve with our new location in South Carolina wouldn’t have been possible without the help we received from Javier and the Corporate Banking Team at CSB.”
With additional assistance from CSB in developing a succession plan to transition certain responsibilities from Leon to his son, Krystian, LAB Medical successfully managed the acquisition and phased expansion of the new facility in 2021 (late 2020 acquisition and phased expansion in 2021). Now on track to reach their business objectives, LAB Medical is projected to see approximately $10M in growth over the next five years. With another expansion in the Massachusetts area on the horizon, the company’s development will continue to create more jobs in today’s competitive market.
“It has been a rewarding experience to be able to offer our longstanding customer the flexibility and capital to move a significant part of their operation into a new market,” said Javier Bellini, Corporate Banking Loan Officer at CSB. “Despite the difficulties presented by this unique situation during such economic uncertainty, LAB Medical’s successful acquisition is yet another example of how relationship banking empowers our customers to set inspiring goals for their company’s next evolution.”
CSB’s commercial division is focused on serving the needs of their local communities and businesses, offering a full suite of Corporate Banking and Lending, Commercial Real Estate Lending, Treasury Management and Trade Services solutions. Cambridge Savings Bank is the bank you can trust to provide customized services to meet your business needs. To learn more about CSB’s custom solutions for commercial entities, please contact:rkershaw@cambridgesavings.com.