Industry: Transport
Product: Invoice discounting with GGS top up and term loan
Facility size: £1.1m
The client
Established 50 years ago, this business has grown from operating as a parts manufacturer, to now being one of the UK & Ireland’s leading suppliers of exhaust systems for off-highway vehicles in construction, mining and agriculture.
Known for encouraging innovation and efficiency, they have historically focused on their core clients and building these long-term relationships and supplying over 10 million products worldwide.
The challenge
With retirement on the horizon, the family were keen to exit the business and offer new owners the opportunity to lead the company on its next phase of growth.
A consortium was formed to progress the acquisition, which required a flexible funding solution to both support the transaction and provide additional capital for investment.
Opportunity
Historically, the firm’s customers have been UK and Ireland based; however, with the factory currently operating at just 60% of its total capacity, there is a clear ambition to increase market share across Europe. The new owners also indicated their willingness and ability to invest in increased staffing levels and new technology to further improve operational efficiency.
The solution
Close Brothers Commercial Finance provided the buyers with a £1.35m invoice finance facility, including a Growth Guarantee Scheme (GGS) term loan and top-up.
The GGS loan is a government-backed scheme designed to support business growth by providing additional funding, which can be used alongside an invoice finance facility. This ensures the firm has the capital to invest in new staff, equipment, and other resources required for expansion.
By working closely with our experts, the new owners secured a tailored financial solution that made the purchase of the company possible and provided the capital they needed for their ambitious growth plans.
The result
With the new facility in place, new staff are already on board and boosting production while expansion plans progress. The extra capital has enabled investment in an updated supplier and stock management system which integrates with their IT system, giving them real-time access to inventory and enhancing their operational capability.
The flexible funding solution provided by Close Brothers Commercial Finance has successfully addressed the challenges faced by the new owners, ensuring they have the financial support needed to drive the company forward.
