Arbuthnot Commercial ABL has structured and delivered an £11.8m asset based lending transaction to support the acquisition by Nimbus of the Centrifugal Castings Division of Doncaster’s Group for an undisclosed sum. The division comprises Teesside-based Paralloy and South Yorkshire-based Firth Vickers Centrispinning (FVC), providing high precision cast alloy products that service the petrochemicals and aerospace industries respectively.
The ABL package, which consisted of a receivables funding line, revolving inventory facility, plant and machinery term loan, and a cash flow loan was used to enable the management buyout of Paralloy as well as to help drive future growth. Nimbus backed the senior management team, led by chief executive Robert McGowan, to acquire the business and will use its pan-European footprint, operational capability, and transformational change experience to support Paralloy and FVC’s ambitious growth and export plans.
David Keenan, Investment Director at Nimbus, who led the carve-out transaction, said: “Arbuthnot Commercial ABL was perfectly placed to deliver this deal. Both of our firms are relationship-driven; in fact, key members of the team at Arbuthnot Commercial ABL funded our very first UK acquisition. They were very innovative in coming up with a cash flow solution for this transaction and displayed a commercial appetite to support an SME business that has a huge international reach. In addition to the global dimension, it was important for us to be able to manage the deal closely within Yorkshire and the North East, and partner with businesses and advisers which have an established local presence.
Arbuthnot Commercial ABL met all of our criteria and delivered the deal on time and in full. The future for the business is very exciting and as a result of the transaction, the management team has an opportunity to build on a record year as well as 100 years of history.”
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