Bibby Financial Services provides £1.6m funding to Toolspec Manufacturing
SME funder Bibby Financial Services has agreed a £1.6m funding facility to Toolspec Manufacturing Company Limited. The new facility is a combination of invoice discounting and asset finance.
Established in 1961, the Bedfordshire-based manufacturer is a specialist welding and fabricating business, which provides a range of welding products for the automotive and agricultural industries. Toolspec provides its products to well-known businesses including Jaguar Land Rover, JCB and Case New Holland.
Until July this year, Toolspec was part of the Arc Specialist Engineering Ltd group of companies before being bought by Cable Capital Partners. Following its acquisition by Cable Capital Partners BFS were introduced to provide working capital to help the company enter its new chapter as an independent business.
BFS’s corporate team provided £1.3m in invoice discounting and £300k through asset finance.
Jonathan Handford, managing director, Toolspec Manufacturing Company Limited said:
“It has been a busy summer for everyone at Toolspec following our changing of hands and then shifting our focus to the future of the business and how we can grow. Vital to the next chapter for the business was securing a funding partner that can provide the working capital that we need by making use of our assets. Bibby Financial Services was able to come in quickly following our acquisition and provide the right funding package for our business.
“Working with our new owners, Cable Capital Partners, we have our eyes fixed on achieving strong growth. There are a number of opportunities that we are looking at such as broadening our product and customer portfolio to areas such as rail and aerospace. We also see strong opportunities in our existing markets. Car production in the UK remains strong and with a lower pound, exports, which account for a quarter of our sales, are looking increasingly attractive.”
Dan Burton, regional head of corporate at Bibby Financial Services added:
“Toolspec is a great business, with strong potential as it plots its new course under the ownership of Cable Capital Partners. It has an enviable list of customers, and under Jonathan and Cable Capital’s leadership, Toolspec has a strong potential for future growth.”
Eliot Mosafi, managing director from Cable Capital Partners added:
“The recent acquisition of Toolspec is an important one for our business as we look to build up our portfolio in the manufacturing and automotive industries. As we neared the finalisation of the deal, we were keen to bring on board a funding partner that could provide a flexible working capital solution. Bibby Financial Services was able to structure a deal that works for the business and provide the funding that it needs. Working with Toolspec, we are currently looking at further strategic acquisitions in the sector such as sheet metal fabrication and powder coating that would diversify our portfolio and also create valuable synergies.”