Steel supplier secures £35m to support expansion
Secure Trust Bank Commercial Finance has provided a £35m finance facility to Barclay & Mathieson Ltd (B&M Steel), a national steel stockholder and supplier.
The funding provided by Secure Trust Bank Commercial Finance has allowed the company to complete a successful acquisition of South Essex Stockholders, a steel stockholder and supplier based in Southend-on-Sea.
The deal has brought the total number of depots to 16 in the UK – up from 14 – and a headcount of 400. As well as this, the funding will be used to help manage the company’s cash flow and boost working capital.
Founded in Glasgow in 1877, B&M Steel has grown to become one of the UK’s largest steel stockists and fabricators. With access to over 30,000 tonnes of steel, B&M Steel offers one of the largest product ranges on the market, including steel safety products, tubes, plates and sheets. The company also serves a broad range of sectors, including oil and gas, transport, manufacturing and construction.
This is the third steel stockholder that Secure Trust Bank Commercial Finance has backed in 2018. In March, the firm provided a £2m invoice finance facility to South West based Avon Steel to support its future acquisitions. More recently, Meridian Metal Trading secured a £35m facility to help meet its working capital requirements.
Advising B&M Steel on the transaction, Mick Welden at Breal Capital, said:
“B&M Steel has a strong heritage in the steel industry and has established itself as a market leader within the UK. Its unrivalled product range and levels of service make it an exceptional business, so we were keen to source a finance facility to help meet its working capital requirements and support its continued expansion.
“The team at Secure Trust Bank Commercial Finance have an excellent understanding of the market, and were able to provide a funding line that would meet the needs of the company. The funding also enabled the merger with South Essex Stockholders, which will allow B&M Steel to bolster its presence in the South of England.”
David Parsons, regional managing director at Secure Trust Bank Commercial Finance, said:
“B&M Steel required a flexible facility that would ease its financial restrictions and allow it to make strategic acquisitions that would boost growth. The company is now in a strong position for the future and has further bolstered its presence in the South. We look forward to seeing the continued progression of the company over the next few years.”
The facilities consist of invoice finance, stock finance, plant & machinery loans and a property revolving credit facility. Secure Trust Bank was advised by Pinsent Masons and B&M Steel was advised by gunnercooke.