Arbuthnot Commercial ABL supports acquisition of Wagstaff Bros. with £9.5m funding facility

By Bridging Loan Directory 14th March 2022

Arbuthnot Commercial Asset Based Lending (“ACABL”), the asset-based lending subsidiary of Arbuthnot Latham, the private and commercial bank, has completed a flexible funding facility to support Vine Street Capital’s acquisition of Wagstaff Bros., Limited (“Wagstaff Bros.”).

Established in 1908 and headquartered in Clerkenwell, London, Wagstaff Bros. is the UK’s leading independent commercial office furniture and fit-out provider with a £68m turnover.

The £9.5m funding package, comprised of receivables financing and a cash flow loan, not only contributed towards the deal consideration, but will also generate additional working capital to enable growth post-transaction.

This is the second transaction in which Arbuthnot Commercial ABL has supported a Vine Street Capital portfolio company, after funding the acquisition of Doby Verrolec in March 2021.

Mark Perryman who took the role of Chairman led the transaction for Vine Street Capital.

Commenting on the deal, Chairman, Mark Perryman, said:

“We only had a few weeks to complete this MBO or we would have lost the opportunity.

We recognised that most banks would be too slow to deliver at this level and Arbuthnot Commercial ABL was the only provider that moved quickly and commercially to get the transaction completed on time.

‘Commerciality’ is something that is easily said but not always delivered by banks in practice.

However, the team at Arbuthnot Commercial ABL demonstrated their ability to get the deal done, always looking for reasons to fund the transaction, rather than simply ticking the standard due diligence boxes.

We have exciting plans to grow Wagstaff Bros. on several levels, by recruiting a larger sales force to further extend our regional reach outside of London, by addressing the growing opportunity to invest in a compelling online offering and by focusing on developing markets such as the university space and the NHS.

Arbuthnot Commercial ABL delivered the flexible working capital that will give the business the opportunity to fund growth.”

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

“This is our second transaction in support of Vine Street Capital. When completing business critical transactions, time is of the essence and our experienced team really comes into its own, delivering the desired level of funding at the pace required.

This enables us to give private equity sponsors and their mid-market clients the certainty that they cannot find elsewhere.”