The total funding package includes a £2m receivables financing line, a £1m cashflow loan, and a £1.5m RLS term loan.
Arbuthnot Commercial Asset Based Lending (ABL) has supported the management buyout of SafeGroup Services Limited, an independent provider of reactive cleaning and waste services.
The total funding package includes a £2m receivables financing line, a £1m cashflow loan, and a £1.5m Recovery Loans Scheme (RLS) term loan.
Martin Gammon, chairman, and Oliver Hewett, finance director of SafeGroup, led the transaction, which provided funding in support of the partial share purchase consideration and additional headroom for growth.
Andrew Rutherford, commercial director at Arbuthnot Commercial ABL, said: “This is a great opportunity to partner with an innovative, independent business in a regionally fragmented sector, with a clear vision, an experienced team and a strong platform for growth.
"We have supported several ‘sponsor-less’ MBOs recently, and it is interesting to see transactions of this kind become a regular feature of the UK M&A landscape alongside private equity sponsored transactions, which together are fuelling a buoyant management buyout market.”
Hewett added: “We are on an exciting entrepreneurial journey driven by customer-focused innovation.
"With the new funding in place, we plan to double the size of the business in the next three years and aim to further extend our geographical reach throughout the UK.
"We view Arbuthnot Commercial ABL as a supportive funding partner in helping us achieve our strategic growth objectives.
"Having conducted a number of transactions in the past that have been subject to a shift in some way, we greatly appreciated the consistency of Arbuthnot’s approach and the fact that they delivered precisely what they said they would.”
