Arbuthnot Commercial ABL supports the acquisition of P+P Non-Ferrous with a £2.7m funding package to drive buy-and-build strategy
Arbuthnot Commercial Asset Based Lending (“ACABL”) has supported the acquisition of P+P Non-Ferrous (Stockists) Ltd (“P+P”) with a £2.7m asset-based lending (ABL) facility, comprising a confidential invoice discounting line, a cash flow loan and an RLS loan.
Arbuthnot Commercial ABL structured the funding package to support the day-one purchase consideration together with additional working capital headroom for growth post-completion.
Midlands-based P+P joins Bornmore Metals, whose acquisition was funded by Arbuthnot Commercial ABL in 2019, as a member of the Steel Dynamics Group family of companies and brings strong product synergies and economies of scale to the Group.
P+P stocks and supplies a wide range of non-ferrous metal bars, tubes and sheets to a well-established customer base in sectors including engineering, manufacturing, construction and industrial applications.
Commenting on the transaction, Ian Griffiths, CEO of Steel Dynamics Limited, said:
"The two things that have impressed me most about working with the team at Arbuthnot Commercial ABL are the speed and flexibility they show when delivering transactions. The strong understanding and relationship that we built with them through working together on Bornmore, enabled them to come up with an offer quickly. This allowed us to focus on negotiating and completing the deal at pace, secure in the knowledge that the funding was available.
As a group, we are currently trading at a run rate of around £55m to £60m and expect to grow to around £100m in the next three to five years through a combination of acquisition and organic growth. We see Arbuthnot as a key partner in funding our growth
Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said:
“This was an excellent opportunity to back a synergistic acquisition for a respected and ambitious group that we know very well. We accurately supplied the level of funding, speed, and flexibility needed, not only to secure the acquisition but also to provide the necessary headroom to help the business drive organic growth. We look forward to supporting the Steel Dynamics Group in the future with further acquisitions powering their buy-and-build strategy.”
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