Arbuthnot Commercial ABL provides £2m facility
Arbuthnot Commercial ABL is pleased to announce the recent completion of a £2m financing for Climatec Windows Limited and Alu-Tec (UK) Limited.
The facility will be used to support the group’s day-to-day management team in the acquisition of a material equity stake alongside its existing shareholder directors, Steve Barker and Phil Bates. This has meant that the group has been able to strengthen its board, generate additional liquidity to support its development and provide its wider management team with a long-term equity incentive.
The transaction was structured as a shareholder-financed management buy-out and driven by a tight completion timetable.
Based in the South East, Climatec is a successful manufacturer and supplier of high-quality windows and doors for trade and commercial customers across the UK. The business was founded in 1993, initially operating from a 2,200-ft² factory unit. Since then, Climatec has grown quickly, developing complementary products and investing in state-of-the-art machinery.
Alu-Tec (UK) Limited was established in 2012 to diversify in to the aluminium sector of the window industry in which it manufactures and supplies high performing aluminium windows and doors catering for all customers trade, commercial and contract needs.
Today, the group has over 150 employees on the payroll and operates from over 10 factory units totalling 50,000 ft², manufacturing both uPVC and aluminium systems and averaging well over a thousand products a week.
Steve Muskett, finance director, said: “Arbuthnot Commercial ABL has succeeded in structuring a deal that has met the objectives of everyone involved, with no dilution of equity. Arbuthnot’s flexibility, certainty of delivery and speed of execution were our key decision-making criteria and their team rose to the challenge. They were helpful and knowledgeable and demonstrated their commitment to getting the deal done. This is a massive opportunity for the management team to help drive the future direction of the business, bringing new ideas to the table to make it even more successful in the years to come.”
Andrew Rutherford, commercial director at Arbuthnot Commercial ABL, said: “Climatec and Alu-Tec (UK) are strong regional businesses, operating in a sector which we know well. In common with the majority of our financings, this opportunity was brought about by the combination of a complex shareholder event and a requirement to transact at pace. Our facility has enabled the group to put in place a long-term equity incentive for the next-level management team, whilst the existing shareholder directors have also been able to demonstrate their long-term commitment to the business while realising some value from their shareholdings. The additional liquidity now in place will enable the group to capitalise on growth opportunities throughout the second half of 2020 and beyond.”