Asset Based Lending -
Arbuthnot Commercial ABL structures £6.5m deal for MRO+ Solutions to meet increased demand for industrial components
The funding package, which combines a £5m invoice discounting facility alongside a £1.5m term loan, provides consistent funding availability to the Group and also aligns with the growth projections contained in the Group’s strong business plan following some important new customer wins.
MRO+ Solutions is a leading distributor of critical components to industrial businesses; a national, technically focused Group assembled and backed by specialist private investment firm, Cairngorm Capital.
MRO+ Solutions has been created through the acquisition of three MRO (Maintenance, Repair and Overhaul) distributors operating across related sectors of fluid power, cutting tools, and industrial supplies. Cairngorm Capital acquired the core business in 2018 before building it to its current scale through two subsequent acquisitions. The Group now operates from seven sites and, alongside organic growth, continues to advance its accelerated investment programme through buy and build acquisitions of businesses across the MRO product range.
John Naylor-Leyland, Managing Director at Cairngorm Capital, said:
"We have had a long-standing dialogue with the team at Arbuthnot Commercial ABL, who we see as a true lending partner. They took the time to get to know the business, its operating environment and customer dynamics and structured a combined facility that reflects the need for consistent availability of funding and a strong underlying customer base. These facilities position the business well for the long-term. Arbuthnot Commercial ABL were collaborative in their approach, focused on the key points for the business and delivered the structure of the transaction precisely as agreed.
We continue to invest in the underlying business where we see significant scope for further growth and will also look to advance opportunities in the metalworking and fluid power spaces as we build scale in these key verticals.”
Andrew Rutherford, Commercial Director, Arbuthnot Commercial ABL, said:
“In MRO+ Solutions, Cairngorm Capital is investing in building a strong Group with a clear strategic vision and investment strategy. We recognise that every business is unique; they all have particular aspects of their business model or their growth plans that a lender really needs to understand and that can only be achieved through building long-term partnerships. We are excited by MRO+ Solutions’ journey and look forward to working closely with them as they continue on their fast track growth trajectory, including through future buy and build acquisitions.”
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