Arbuthnot Commercial ABL supports championship-winning Spirit Motorcycles’ acquisition of Talon Engineering
Arbuthnot Commercial Asset Based Lending (“ABL”) has delivered a flexible funding facility to support Spirit Motorcycles (“Spirit”), the team that pioneered the British GP2 Championship, with its strategic acquisition of engineering business, Talon Engineering (“Talon”) for an undisclosed sum.
The comprehensive ABL package consisted of a revolving receivables finance facility, together with inventory and plant & machinery term loans. Arbuthnot Commercial ABL worked closely with Cattaneo Corporate Finance and both management teams to provide the funding in time for the start of the racing season.
Headquartered in Shaftesbury in Dorset, Spirit are the reigning GP2 champions, having secured four wins and seven other podium finishes from twelve races. Talon is an engineering firm known globally for its quality range of hubs, expertly laced wheels and off and on-road sprockets. The deal will see Spirit’s team of highly experienced designers and network of former MotoGP engineers bring their expertise to a respected brand. The business will be run by Rod McDonagh, Spirit Motorcycles’ founder and pioneer of the GP2 Championship.
Rod McDonagh, owner of Spirit, said
"As an M&A lawyer, I have worked on transactions for many other businesses but never my own, until now. The team at Arbuthnot Commercial ABL was fundamental to structuring the deal and getting it over the line and without their support this acquisition would not have happened. As a result of this transaction, we can accelerate Talon’s strategy of delivering world-class products, ramping up production and expanding into new markets. I look forward to working with Arbuthnot Commercial ABL as we continue to leverage growth opportunities”
He continued: “The funding provided by Arbuthnot Commercial ABL has enabled us to complete the MBO as well as flex the availability of working capital to accommodate our expansion. As a result of the additional funding, we are able to take on take on bigger projects and increase production from two shifts to three to maximise our asset utilisation.”.
Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said:
“In a sport in which fractions of a second count for everything, completing this transaction to meet the start of the GP2 Championship racing season was business-critical. It is always inspiring to work on transactions where there is a blend of synergy, talent and ambition and we are delighted to have worked with Cattaneo and the management teams at Spirit and Talon to deliver this exciting acquisition as a platform for growth”.
If you want to find out more about how we can help you achieve your business goals using the financing we provide, please do get in touch with one of our local representatives.
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