Arbuthnot Commercial ABL supports Gearing Up’s acquisition
Arbuthnot Commercial Asset Based Lending (“ABL”), the asset-based lending division of Arbuthnot Latham, the private and commercial bank, has completed a structured finance facility to support Gearing Up’s acquisition of the Portsmouth-based precision engineering and tool-making business, Langstone Group (“the Group”), alongside further investment from Panoramic Growth Equity. The acquisition sees the Group double in size.
This is the third transaction in which Arbuthnot Commercial ABL has supported a Panoramic Growth Equity portfolio company, following the provision of growth finance facilities for Gearing Up (trading as Precision Technologies International) and Plumbworld in 2019. The flexible funding package, which comprised receivables financing and plant & machinery and property term loans, not only contributed towards the deal consideration, but will also generate additional working capital to enable growth post-transaction.
Headquartered in Tamworth, Gearing Up is a UK-based manufacturer of precision cut and ground gears, splines, threads and gauges. Langstone Group serves blue-chip organisations across a range of industries such as F1, high-performance automotive, aerospace and the marine sector. Specialising in 5-axis machining with a team of 45 engineers, the business has over 20 years’ experience in mould tools, precision engineering and design.
James Nicklin, managing director of Gearing Up, said: We are pleased to have completed this highly complementary acquisition with the assistance of Arbuthnot Commercial ABL. They have been very supportive throughout the pandemic and our business has emerged in a strong position, having made the right strategic decisions. It has been good to have the opportunity to extend our relationship through working together on this acquisition. We involved Arbuthnot Commercial ABL’s team at the start of the process to look at how a deal could be structured, and they were able to come back to us very quickly with indicative heads of terms. As expected, they were professional and responsive and true to their word in every aspect of delivery. Their systems are also second to none and they were able to onboard and integrate the new business quickly and seamlessly.”
Andrew Rutherford, commercial director at Arbuthnot Commercial ABL, said: “It has been a pleasure to support James and his team with the acquisition of a very well invested and managed business that brings strong customer synergies, expanded capacity and technical abilities to the group. It is critical in times of rapid change that lenders stay close to their clients to understand where they want to go next as their needs evolve. That means looking beyond the initial transaction to develop genuine relationships with clients and listening to them when they are ready to explore new opportunities. Crucially, this is why businesses and their private equity investors come back to us.”
