Arbuthnot Commercial Asset Based Lending (“ABL”) has structured and delivered a £5m full service asset based lending facility to support the acquisition by Chiltern Capital LLP of Doby Verrolec (“Doby”) from its German parent, Heitkamp & Thumann KG. The comprehensive all-asset finance facility is comprised of receivables, inventory, plant and machinery, property and an additional cash flow loan to provide the quantum of funding required.
Based in Durham, Doby Verrolec is the UK’s leading manufacturer of ductwork jointing systems and components for HVAC (heating ventilation and air-conditioning) systems. The business, which has 54 full time employees, also supplies suspension systems, metal sections and profiles for a range of other applications as well as bespoke products and engineered solutions.
This transaction will allow Doby’s longstanding and skilled management team to focus on developing greater company efficiencies, launch new complementary products and ultimately expand across the UK.
This is the fourth complex sponsor-driven carve out transaction that Arbuthnot Commercial ABL has completed in the past two years, in addition to Tivoli Group, Incodia and Pyroban.
David Butler, Investment Manager at Chiltern Capital LLP, said: “This transaction contains all of the ingredients for a successful ABL-backed acquisition: a profitable business with a well-established market position; a respected, long-serving management team; a strong asset base with well invested plant & machinery and a responsive lender in Arbuthnot Commercial ABL.
Arbuthnot Commercial ABL created the best possible deal structure for us as investors and for the business in terms of the flexibility of the solution and the level of funding provided. They gave us the confidence early on that the deal would be delivered and provided assurance through credit committee approval of the terms offered to ensure that the transaction was conducted at pace. Communication was excellent throughout the deal process and Arbuthnot’s team was always open and receptive, easy to work with, transparent and very supportive.”
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