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Arbuthnot Commercial ABL completes structured finance facility for Gearing Up acquisition

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Arbuthnot Commercial Asset Based Lending (ABL) has completed a structured finance facility to support Gearing Up’s acquisition of Langstone Group, alongside further investment from Panoramic Growth Equity. 

 

This is the third transaction in which Arbuthnot Commercial ABL has supported a Panoramic Growth Equity portfolio company, following the provision of growth finance facilities for Gearing Up and Plumbworld in 2019.

The flexible funding package, which comprised receivables financing and plant and machinery and property term loans, not only contributed towards the deal consideration, but will also generate additional working capital to enable growth post-transaction.

James Nicklin, managing director of Gearing Up, said: “We are pleased to have completed this highly complementary acquisition with the assistance of Arbuthnot Commercial ABL.

“They have been very supportive throughout the pandemic and our business has emerged in a strong position, having made the right strategic decisions.

“It has been good to have the opportunity to extend our relationship through working together on this acquisition.

“We involved Arbuthnot Commercial ABL’s team at the start of the process to look at how a deal could be structured, and they were able to come back to us very quickly with indicative heads of terms.

“As expected, they were professional and responsive and true to their word in every aspect of delivery.

“Their systems are also second to none and they were able to onboard and integrate the new business quickly and seamlessly.”

Andrew Rutherford, commercial director at Arbuthnot Commercial ABL, added: “It has been a pleasure to support James and his team with the acquisition of a very well invested and managed business that brings strong customer synergies, expanded capacity and technical abilities to the group.

“It is critical in times of rapid change that lenders stay close to their clients to understand where they want to go next as their needs evolve.

“That means looking beyond the initial transaction to develop genuine relationships with clients and listening to them when they are ready to explore new opportunities.

“Crucially, this is why businesses and their private equity investors come back to us.”

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