Arbuthnot Commercial ABL provides £5.5m facility to support the acquisition and growth of Bromborough Paints
Arbuthnot Commercial Asset Based Lending (“ABL”) has structured and delivered a flexible £5.5m facility to support Cairngorm Capital’s acquisition of Bromborough Paint & Building Supplies Limited (“Bromborough”).
The comprehensive funding package, which incorporates receivables, inventory and cash flow elements, will support the purchase consideration, allow the business to extend its geographic distribution and accelerate the growth of its e-commerce offering. Bromborough is the second client that Arbuthnot Commercial ABL shares with Cairngorm Capital alongside MRO+ Group, which became a client in October last year.
Established in 1948, Bromborough Paint & Building Supplies is a family-owned, specialist independent paint distributor, headquartered in the Wirral. The company currently has 17 branches across the North West of England, serving trade and retail customers, and an eCommerce platform, Trade 1st, that supplies paint and decorating supplies nationwide. The business, which has over 100 employees and annual revenues of £17m, is one of the largest independent paint distributors in the UK.
Josh Chilton, investment manager at Cairngorm Capital Partners LLP, said: “We were delighted to partner with Arbuthnot Commercial ABL to support the acquisition of Bromborough Paints. This transaction will enable the business to capitalise on its significant market opportunities in a very attractive sector. What we appreciated most about Arbuthnot Commercial ABL’s approach was the willingness and ability of their team to step into our shoes and understand the transaction from our perspective. This, together with the flexibility and commerciality that they demonstrated throughout the process, was a real differentiator.”
Andrew Rutherford, commercial director at Arbuthnot Commercial ABL, said: “We are extremely pleased to have had the opportunity to work with Cairngorm Capital on this transaction and very much look forward to supporting the next phase of Bromborough Paint’s growth as they look to build the business and roll out their new branch locations. This deal emphasises the importance of building collaborative relationships founded on trust and the benefits that this brings to the funding solution for all parties.”