Secure Trust Bank Commercial Finance and BZ support Chiltern Capital’s acquisition of Batt Cables

By Bridging Loan Directory 11th September 2023

Specialist asset-based lenders, BZ and Secure Trust Bank Commercial Finance (“STB CF”), have provided multi-million pound facilities to support private equity investor Chiltern Capital’s acquisition of Batt Cables, one of Europe’s leading distributors of electrical cables.

BZ structured a flexible hybrid facility comprising a term loan and RCF, while STB CF provided a fully revolving receivables and inventory facility, creating a joint funding package to support Chiltern Capital’s acquisition.

The facility not only enabled Chiltern Capital’s acquisition of Batt Cables, but has also created significant additional headroom to support the business’s working capital requirements, propelling its continued growth.

Founded in 1952, Batt Cables is a UK headquartered, global specialist in the management and distribution of electrical cables, with facilities in the UK, mainland Europe, USA and Asia.

The business generates over £200m in revenue and holds a wide range of over 8,000 different products in stock, serving industries including infrastructure, construction, renewables, offshore, telecommunication and transport.

James Ambrose, Regional Sales Director at STB CF, said:

“Having worked with the Chiltern Capital team on a number of recent transactions, we are delighted to have supported Joe and the team once again to deliver this landmark transaction.

This continued relationship reflects the ability of ABL and private equity to work together in tandem with M&A activity, as well as unlocking working capital to help businesses to thrive.

I look forward to working closely with Chiltern Capital and Batt Cables to continue delivering on their strong growth aspirations.”

Joe Bennett, Investment Director at Chiltern Capital, added:

“We’re delighted to complete this transaction alongside STB CF and BZ. It was a complex deal with international elements and a network of freehold properties, so to complete the transaction relatively smoothly is a testament to the STB and BZ deal teams and our advisers.

As well as providing a smooth ownership handover, the deal provides Batt with significant financial firepower to invest in further growth, so it is an exciting new era for the company.”

Cem Yaslak, Regional Director at BZ, said:

“We are very pleased to support the team at Chiltern Capital with a flexible financing solution that maximises the liquidity available for Batt Cables.

The bespoke debt package gives the business the funding certainty it needs to accelerate its positive growth trajectory.”