Industry: Distributor of household goods
Products: Invoice Discounting and Asset Based Lending
Business need: Management Buy Out
Bodel is a leading distributor of appliances, sinks, taps and kitchen equipment for leading brands such as Franke, Bosch and Smeg.
Sales Director John Leckey, who has worked at Bodel for 23 years, wished to acquire the business. The ABL facility from Close Brothers Commercial Finance allowed him to release additional capital tied up in stock to fund the transaction and take over ownership of the company.
John commented, “With Bodel celebrating its 40th birthday this year, I am very pleased to have partnered with Close Brothers to facilitate the acquisition, and look forward to writing the next chapter in the history of this thriving business. I was impressed with Close Brothers’ flexibility and creativity in structuring this transaction. We (the management
team) needed to find a lender who saw the strategy, supported the vision, and put enough funding in place to enable the MBO to progress.”
ABL is an excellent option for businesses looking to finance a management buy-out/buy-in, a merger or an acquisition. Alternatively the extra funds can be used as a contingency, providing additional working capital as and when required.