Arbuthnot Commercial ABL structures a £12.6m facility to support acquisition and portfolio growth

By Bridging Loan Directory 26th May 2022

Colchester-headquartered private investment group, Milbank Ventures, is to fuel its future growth plans with the support of a comprehensive new facility funded by Arbuthnot Commercial Asset Based Lending (ACABL).

Milbank, which comprises a portfolio of eight businesses operating across a diverse range of markets, has secured a new £12.6m facility from asset-based lending specialist.

The deal, which consists of an accounts receivable line provided across five group companies, a cashflow loan and a plant and machinery revolver, will allow the group to secure new acquisition opportunities and sustain the growing working capital needs of its expanding portfolio.

Family-owned Milbank, which traces its roots back to the 1820s, owns businesses in a range of different sectors including construction, agriculture, retail, and marketing and currently employs more than 250 people across its portfolio.

In 2021, the £50m turnover group made three acquisitions, including agricultural film manufacturer Silostop, digital marketing agency Xanthos and Nicola Jane – the UK’s leading mastectomy and post-surgery wear specialists.

Sean Milbank, Chairman, Milbank Ventures, said:

“We were looking for a more entrepreneurial, supportive funding partner that would understand our growth aspirations and business model in terms of creating a diverse portfolio rather than adopting a conventional, concentrated buy-and-build approach.

We had worked with the team at Arbuthnot Commercial ABL previously and developed a strong relationship, so it feels almost like we’re coming home.

Their innovative, relationship-driven approach is refreshing and is a great cultural fit for us.”

Matthew Sparrow, Group Finance Director, Milbank Ventures, said:

“Arbuthnot Commercial ABL made the whole experience very easy from start to finish.

Within just two meetings, we had met everyone involved in structuring the deal and running the facility.

Their team took a commercial view in designing the entire facility with growth in mind, right down to the bespoke documentation which they created to enable us to bring new acquisitions into the group quickly and easily.

We wanted a relationship with a lender that we could talk to about our plans and become part of the process to support us and challenge our thinking.

We have found that with the team at Arbuthnot and are excited to be partnering with them to help us drive our ambitions.”

Andrew Rutherford, Commercial Director, Arbuthnot Commercial Asset Based Lending, commented:

“We are delighted to work with a management team that we have known for many years that shares and values our collaborative approach.

We have structured a transactional framework designed specifically around the group’s acquisition strategy to generate optimal headroom for future growth.

We applaud the leap Milbank is making not only in their commitment to growth but also their ESG impact and look forward to supporting the group’s plans as a long-term funding partner.”