Arbuthnot Commercial ABL supports REACT’s acquisition of LaddersFree with a flexible £3m funding line
Arbuthnot Commercial Asset Based Lending (ACABL) has provided a £3m funding facility to support REACT Group PLC’s (REACT) acquisition of LaddersFree Ltd, an established nationwide commercial window, gutter and cladding cleaning company.
The flexible funding package consists of a £2m accounts receivable line to fund both core and target companies and a £1m cashflow loan.
This funding package will create additional headroom to support working capital and provide a platform for future acquisitions.
REACT is an AIM-listed group of commercial cleaning businesses that provides both reactive and recurring contracted cleaning services across the UK.
The acquisition of LaddersFree marks REACT’s second acquisition over the last 15 months in line with the Group’s stated strategy of building a leading industry position through a combination of organic growth and strategic acquisitions.
REACT Specialist Cleaning Ltd was founded over 20 years ago to provide a dedicated 24/7 specialist cleaning and decontamination service to the public sector.
Today, REACT operates in a diverse range of market sectors, from education and leisure to transport operators, police forces, and the prison service.
Andrea Pankhurst, CFO at REACT Group PLC, said:
“The team at Arbuthnot Commercial ABL has been very easy to deal with. From our very first meeting, they understood precisely what we were looking to achieve.
They clearly set out what they expected from both sides at every stage of the transaction and have been supportive, pragmatic, and responsive throughout the acquisition process.
We now have three operational companies in the group as well as the PLC parent company and the facility from Arbuthnot Commercial ABL allows us greater flexibility with our working capital.
We look forward to developing a long-term relationship with Arbuthnot Commercial ABL and very much hope to work with them on future acquisitions.”
Andrew Rutherford, Commercial Director, Arbuthnot Commercial Asset Based Lending, commented:
“We were delighted to support the REACT team with this important strategic acquisition aligned with the ambitious growth goals of the Group.
This will enable the Group to broaden its customer base with national household name brands and strengthen its recurring revenue streams with the certainty that comes from flexible ongoing funding.
We are excited by the opportunity of supporting the Group’s future acquisition plans and to maximising the availability of working capital to fuel further success.”