Arbuthnot Commercial ABL creates bespoke MBI funding for leading textile manufacturer

By Bridging Loan Directory 10th May 2023

Arbuthnot Commercial Asset Based Lending (Arbuthnot Commercial ABL) has tailored a £3m funding package to support the Management Buy-In (MBI) of Fine Group, a leading specialist textile manufacturer based in London.

Alongside the investment from the acquirers, the flexible funding package, which comprised a receivables finance facility and a cash flow loan, supported the share purchase consideration.

The funding package will also provide ongoing working capital to drive future business growth.

Established in 1948, Fine Group is a designer and manufacturer of textile solutions to cover and carry equipment in harsh environments, including defence, fire and rescue, healthcare, and heavy industries such as the rail network.

The Fine Group has its own state-of-the-art manufacturing facilities based in the UK and China.

The acquirers, Philip Redman and Jonathan Hodge, plan to build on the successful growth of this well-established, third generation-family business.

The deal allows the current majority shareholder and Chairman, Ian Fine, to retire.

The existing management team, including Trevor Payne, Managing Director, will remain with the business to work with Philip and Jonathan on continuity and growth.

Philip Redman, Owner and Director of Fine Group, said:

“We were seeking to acquire a business with a strong customer base, a committed and experienced team, and high-quality products.

We saw that Fine Group would represent the ideal platform for growth.

We looked to support our investment in the business with debt funding, and Arbuthnot Commercial ABL stood out to us as a supportive, relationship-driven funding partner who understood what we were looking to achieve.

With Arbuthnot, we have access to the decision-makers, and you never feel concerned that you are going to get lost in the system or be at the mercy of a computer.

Arbuthnot created a logical deal structure that reflects the long working capital cycle of the business and the impetus of our growth journey ahead.

We look forward to working with Arbuthnot, rolling up our sleeves and turning the opportunity into reality.”

Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said:

“We were incredibly pleased to have the opportunity to support two impressive entrepreneurs, Philip Redman and Jonathan Hodge, in acquiring this well-established, profitable group to realise its significant growth potential within its chosen sectors.

By blending a receivables facility with an additional cash flow loan, we have created a hybrid funding structure that has generated the optimal injection of cash to support the purchase consideration of the Group, as well as ongoing working capital to fuel further expansion.”