Successful MBO supports growth
A £1.3m funding deal secured to support the management buyout (MBO) of a Sheffield-based firm ensures it’s best placed to realise future ambitions in the rapidly growing smart building market.
Led by CEO Craig Needham, the ambitious team at Horizon Controls believe smart cities start with intelligent buildings and is committed to maximising increase in demand for intelligent building management system infrastructure within commercial and living asset sectors in the UK and across Europe.
Horizon Controls’ new management team negotiated the acquisition using specialist brokerage services from Reach Commercial Finance and funding from Aldermore Bank. The process was completed within a 12-week period following the referral of Reach Commercial Finance by the company’s bank, RBS.
Following a thorough debtor book review, Reach secured the £1.3m construction finance facility for the purchase of the company and a further six-figure amount to cover its Coronavirus Business Interruption Loan Scheme (CBILS).
With a full understanding of the process and requirements of purchasing the business from the majority shareholder, the Reach team, led by Phil Trueman, worked closely with the client. The team advised on raising finance for this transaction and ensured that the funding was available in time to support the MBO and subsequent trading.
Horizon Control’s CEO, Craig Needham, said: “Reach provided us with excellent support throughout the entire MBO process – enabling us to maintain business as usual during what were unprecedented times. Covid-19 restrictions meant that all meetings with Aldermore were undertaken online, but the entire three-month transaction was handled professionally and seamlessly. It was clear that we were in very safe hands with all parties, and we are happy with the deal secured.”
Phil Trueman, from Reach Commercial Finance, said: “This funding solution was delivered in a tight timeframe and with many restrictions to work around. We are delighted with the results. It’s clearly a very exciting time for Horizon Controls. With a new senior management team working within a global sector that’s booming, we’re looking forward to watching the company grow and expand into different markets and countries.
“We’re also extremely grateful to Eric DeArmitt, Shaun Bennett and Joseph Simpson at Aldermore, for their assistance on this deal.”
Joseph commented: “It’s great that we could support the ambitions of the management team at Horizon Controls to complete this MBO. Our bespoke construction finance facility provided the funding they needed to enable the business to prosper and focus on achieving its next goals.”