Arbuthnot Commercial ABL backs MBO and growth of WG Tanker Group with £5.5m funding facility
Arbuthnot Commercial Asset Based Lending (“ACABL”) completed a structured ABL facility to support the Management Buyout (MBO) of WG Tanker Group Ltd (“WG Tanker Group”).
The transaction enabled the Group Managing Director, Ian Buxton, acquire 100% of the business. In addition to meeting the share purchase consideration to affect the buyout, the £5.5m facility will also provide significant additional working capital for further planned growth. The comprehensive funding facility comprises a confidential invoice discounting line, a property term loan and CBILS Lending.
Based in Foston, Derbyshire, WG Tanker Group is a leading supplier and maintenance provider of road, rail and storage tankers that are used predominantly for the transport and storage of ‘dry’ or ‘powder’ products, such as flour, sand and cement. With its development, WG Tanker gained access to broader markets, including the painting of industrial and commercial vehicles as well as providing shot blasting services. The business provides solutions to the rail and manufacturing sector, and also undertakes work for the Ministry of Defence at its Specialist Coatings and Specialist Projects divisions. Today, the Group employs around 120 people.
Commenting on the deal, Ian Buxton, Group Managing Director of WG Tanker Group, said:
"This was a complex transaction as it involved several elements including the buy-out of my business partner and arranging a mortgage on some land while taking out the existing bank overdraft facility and building sufficient headroom for the planned growth of the business. Arbuthnot came up with a competitive package and their team was very straightforward to work with. With the funding from Arbuthnot Commercial ABL in place, we are firing on all cylinders and are well-positioned to increase profitability and growth by taking on additional business from both existing and new customers. I would recommend Arbuthnot for their pragmatic approach and their ability and willingness to make deals happen"
Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said:
“Completing this MBO enables the business owner to secure the remaining shares and to support the Group to achieve its considerable growth potential. WG Tanker Group is a well-established business with a strong focus on profitability. This transaction is an exciting opportunity for the owner of the business to take 100% control of the company and see through his vision to drive further success in the years to come.”
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