A funding round worth an initial £900,000 has been secured by commercial signage manufacturers Mersons Signs.

Under the terms of the investment, Mersons Signs has locked up a first commitment of £900,000, with a further £3 million available to draw down upon. Funds from the Scottish Loan Fund are being used used to acquire the assets of CGL Systems to provide additional manufacturing capacity.

The deal coincides with an exit for Maven, the first from the fund, involving Aberdeen-based energy services business Red Spider Technology.

Merson, which designs, manufactures, install and manages its signs, has produced goods for projects including Heathrow Terminal 5 and the London Olympics.

Merson managing director Roddy Angus comments, ‘It is great to have secured a funding package that will provide the flexibility to enable the company to pursue its growth and take advantage of opportunities as they arise in the market.

‘We are delighted that Maven was able to support Merson and we look forward to being able to call on the experience they are able to offer particularly given their track record in helping SMEs to grow.’

The Scottish Loan Fund provides loans of between £250,000 and £5 million to companies ‘having difficulty accessing more traditional forms of bank finance’. Maven Capital Partners acts as the fund manager and loans can be repaid over a term of 3-7 years.

David Milroy, investment director at Midven, led the deal and adds, ‘We have been particularly impressed with the quality and strength of the management team who have a great track record and a strong client base with whom the company has forged long standing relationships.

‘The Scottish Loan Fund was also encouraged by the company’s recent success and by its growth prospects in the Middle East where it has established a presence in recent years.’