Funding backs next stage of growth for Lincolnshire-based MBE Fabrications
MBE Fabrications has spent more than 50 years building specialist engineering products from its base in South Lincolnshire. Now under new ownership the business is preparing for its next stage of growth with plans to build further on an export footprint that already spans 17 countries. Evolve Business Finance worked with Veloom to find the right funding partner for the acquisition and future plans, securing support from Aldermore.
MBE Fabrications is a long-established engineering and steel fabrication business based near Spalding in Lincolnshire, employing over 50 people. Its operations include Premier Pits, Premier Rail Pits, Premier Substructures and vegetable harvesting systems. A large part of the business centres on prefabricated steel maintenance pits for the haulage and rail sectors. These are built off-site and can arrive ready-equipped with features such as lighting, airlines and safety barriers, cutting the time needed compared with traditional concrete construction.
Now part of Veloom portfolio, the business already has an international reach with products supplied to 17 countries and projects completed across a wide range of markets. The holding company saw significant scope to build on what MBE Fabrications had already achieved, particularly across Europe and the US. The business already had the products, skills and export track record to support that ambition but the acquisition and future growth plans needed the right funding behind them.
The brief was to find a funder that would take time to understand the business’ plans and the opportunity ahead rather than assess the transaction on headline numbers alone.
Stef took the transaction to a number of banks that he believed could support the deal giving Veloom and MBE Fabrications a focused set of potential options. Following discussions with each lender, Aldermore emerged as the best fit.
Evolve stayed closely involved throughout, helping bring the parties together and keeping the deal moving through to completion. The funding gives Veloom the backing to invest in MBE Fabrications and pursue further international growth. The business has already supplied customers across much of the world and has products in the US providing a base from which the team can build.
Stef Radymski, director at Evolve Business Finance, said: “David and I have worked together over the years so I knew the type of business he and the Veloom team were looking to build. MBE Fabrications has a long history, specialist products and a lot of scope to grow overseas. Our job was to find a lender that understood that opportunity and would take the time to work with the team. Aldermore did exactly that and I’m looking forward to seeing where the business goes from here.”
David Myles, co-founder of Veloom, said: “I’ve worked with Stef several times over the years and went back to him because he is flexible, efficient and knows the funding market well. He brought us three credible options and helped us find the one lender that best understood the business and what we wanted to achieve. With Stef’s help we got the support we needed. We’re now looking forward to expanding what is already a great business.”
Alex Hazell, business development manager for invoice finance and asset based lending at Aldermore said: “MBE Fabrications is a well-established business with specialist expertise, a strong export track record and clear potential for further international growth. We’re pleased to provide the funding to support Veloom’s ambitions for the business and to have worked closely with Stef and the team at Evolve to complete the transaction. We look forward to supporting the business through its next stage of growth.”
Legal advice was provided by Rothera Bray LLP. David Kaplan, partner and head of corporate and commercial and Liz Mills, senior associate, advised on corporate and banking aspects and Ed Postlethwaite advised of the property aspects of the transaction.