Arbuthnot Commercial ABL supports Threesixty’s strategic acquisition
Arbuthnot Commercial Asset Based Lending (ABL) has completed a £1.25m funding facility to support the acquisition of Summit Engineering by Threesixty Holdco 3 (Threesixty) in a management buy-in (MBI) transaction. Arbuthnot Commercial ABL previously supported Threesixty in its acquisition of Sheffield-based precision engineering company Pen Cutting Tools in October 2019.
Established in 1955 as a family business, Summit Engineering is known for its strong reputation for manufacturing high quality machined and fabricated products to meet the specifications of major yellow goods, in addition to power generation and heat exchanger customers.
The comprehensive asset-based lending package, which comprises a receivables finance line, plant and machinery loan and a CBILS facility, was structured to provide support for the MBI. Together with additional liquidity, Summit Engineering is now better positioned to seek organic growth with existing and new customers both in the UK and overseas.
Mark and Sean Frankham, both sons of the company’s founder, had led the business for over 25 years and were looking to secure a retirement sale. A MBI was the ideal solution to ensure the continuation of the company’s legacy at the centre of engineering excellence. In this transaction, John Whitfield, Peter Raybould and Simon Ling invited three additional experienced directors and investors, Mike Measey, Kim Rayment and Graeme Doy, to join them in leading the MBI team.
Peter Raybould, director of Threesixty, said: “We have known the team at Arbuthnot Commercial ABL for many years and trust them implicitly to deliver. They took the time to understand what we were looking to achieve, the dynamics and key drivers of our industry and know how to tailor the right deal structure and execute at pace. Having worked with Arbuthnot on a number of deals, we have developed a fantastic relationship. Threesixty Investments has an increased appetite for the acquisition of disposals across a number of sectors and we very much look forward to working with Arbuthnot as a funding partner on future transactions.”
Andrew Rutherford, commercial director at Arbuthnot Commercial ABL, said: “We are delighted to support Threesixty with the acquisition of a well-established engineering business that has a strong reputation for quality. We thoroughly enjoyed working with the management team to structure a transaction that will enable them to build capacity and realise their plans for future growth.”
