GAP Group secures £130m ABL facilities to support ambitious growth plans
– GAP embarks on further growth after agreeing ABL funding deal
– Syndicate of funders support the completion of the deal led by RBS Invoice Finance
– GAP has employed a strategy to diversify the business and build on this in 2015
Glasgow-based GAP Group (GAP), the UK’s largest independent equipment hirer is targeting further growth after securing an initial five year Asset Based Lending facility of an initial £130m with an accordion up to £220m. This has been provided by a syndicate of banks led by RBS Invoice Finance and includes Barclays, PNC Business Credit, part of PNC Financial Services Group and Wells Fargo Capital Finance.
Founded in 1969 as Gordon Anderson Plant, GAP is today run by Managing Directors Douglas and Iain Anderson who have continued their father’s legacy and the company now employs over 1300 people in 114 locations covering the length and breadth of the UK. The firm has enjoyed significant growth and last year GAP recorded a turnover exceeding £118m (an increase of 20% on the previous year) and this year forecasts a turnover of £140m.
GAP has also employed a strategy to diversify the business and in 2014 launched four new divisions: Survey & Safety Hire, Welfare Services, Event Services and Vehicle Hire. They join GAP’s existing Plant & Tool Hire, Lifting Hire & Sales and Non-Mechanical Plant divisions.
RBS Invoice Finance have been involved with GAP for over 2 years with the provision of a £70m ABL facility to support GAP’s strategy of impressive growth and diversification. The RBS banking team also became the sole banking partner in 2013 and continue to support the business and this, along with the increased ABL facility of £130m, will give GAP the firepower and confidence to deliver their strategy.
The new banking deal was led by RBS Invoice Finance, who are lead arrangers and security agents, with Barclays, PNC Business Credit and Wells Fargo Capital Finance joining the banking club to provide the increased ABL facilities. GAP was advised on its refinancing by KPMG’s Capital Advisory Group.
Douglas Anderson, joint managing director at GAP said: “We’ve built our business on trust, honesty and integrity – a set of core family values which underpin everything we do. With the financial security and flexibility to further grow our business, we are looking to the future with confidence. We were encouraged by the positive reaction shown by potential financial partners, and with the close support of our financing advisers KPMG we were able to improve on our existing banking terms to support our growth ambitions.”
Chris Hawes, director of UK corporate at RBS Invoice Finance added: “GAP has started the year impressively coming on the back of breaking through the £100m turnover mark and has diversified into exciting new areas. We are delighted to continue our support and demonstrate the value of ABL and how it works to unlock the value ‘trapped’ in a company’s assets to assist growing businesses like this. It is fair to say the confidence provided by the ABL line and this new extension of facilities has given GAP a real boost to their growth strategy.”
Jim McIntyre, regional director, West of Scotland, Corporate & Commercial Banking, Scotland, added: “GAP has maintained its highly competitive standing in Scotland and the UK and has performed strongly thanks to its focused management team and asset investment programme. Our corporate and commercial team has worked closely with this sector leading company and will continue to work hard to enable this business to realise its ambitions.”
Last year GAP was ranked in the Scotland Business Insider Top 100 and was announced as Employer of the Year in the Construction News Awards.