Arbuthnot Commercial ABL provides a £12m facility to support Sullivan Street in Tivoli acquisition

21-Jun-2018

Arbuthnot Commercial Asset-Based Lending has structured and delivered a £12m asset-based lending facility to support Sullivan Street’s acquisition of ISS Facility Services and an ambitious future growth plan. The new business will be called Tivoli Group Limited. 

The transaction has delivered funding towards the purchase consideration, as well as providing on-going working capital to drive growth. The lending facility incorporates both a plant and machinery term loan and a revolving confidential invoice discounting line. 

The deal comes just two weeks after Arbuthnot Commercial ABL announced details of their first transaction, with OSET bikes, which was completed ahead of schedule. 

Tim Hawkins, managing director at Arbuthnot Commercial ABL, said: 

“Our ability to understand the business objectives and the assets, as well as our speed and certainty of execution, were integral to this transaction. Asset-based lending has come to the fore in this transaction as it offered the ideal vehicle to create the substantial funding needed to enable the acquisition, and to provide the headroom necessary to fuel business growth. 

“We’re passionate about establishing long-term partnerships and we wish Sullivan Street and the management team of Tivoli Group every success for their future growth.” 

Layton Tamberlin, director, Sullivan Street Partners, said: 

“We are delighted to have acquired the ISS Landscaping business via Tivoli with the support of Arbuthnot Commercial ABL. 

“We were impressed with Arbuthnot Commercial ABL and confident they were able to deliver against the deadline. The key factors were; their pragmatic approach to diligence, which enabled a quick and efficient final credit approval; and a lean team that enabled rapid KYC processes, credit reviewal and account opening. Looking forward, given their expertise, speed and ability to deliver, we see Arbuthnot Commercial ABL as a future partner with which we will look to continue to raise asset backed finance. 

“Tivoli has huge potential that, with our attention, a little growth and a good funding structure, should deliver a fantastic business that is an exemplary employer and delivers beautifully managed grounds across the UK.” 

Dave Edwards, partner at FRP Debt Advisory, who consulted on the deal, said: 

“I’ve known Tim Hawkins and the team for a number of years and they showed a lot more appetite than other providers in the auction process. They met the brief without any fuss, were ahead of the curve on decision making and demonstrated flexibility and responsiveness throughout. We had a tight timescale and they demonstrated a clear ability to deliver.” 

Legal advice was provided to Arbuthnot Commercial ABL by Irwin Mitchell LLP and asset appraisals were prepared by European Valuations.