£10m fresh capital for Bolton manufacturer’s global ambitions
Greater Manchester-headquartered manufacturer Edbro has secured a new £10m working capital facility from Shawbrook Bank with the support of specialist business advisory firm FRP.
Edbro is a market leader in on-vehicle hydraulic systems including front end, underbody and ejector cylinders, waste handling equipment and customised hydraulic kit solutions.
Shawbrook Bank, which was introduced to Edbro by the Manchester debt advisory team at FRP, has provided a multi-million-pound asset-based lending facility, which will provide fresh capital to help to unlock some of the global development opportunities available to Edbro over the next few years.
Shawbrook put forward a competitive funding proposal which ensures that, alongside support from Enact, the company has sufficient liquidity to meet those opportunities over the term of the three-year facility.
The transaction follows the acquisition of Edbro by Enact, the SME platform of private equity investor Endless.
The acquisition was Enact’s third deal in 2021, with the investor now actively supporting Edbro’s future growth strategy, with a focus on operational support, product development and international expansion.
The majority of Edbro’s cylinders are exported overseas, primarily to Europe, with the firm’s products also distributed in key markets including the Middle East, Africa, Asia and Australia.
The business currently employs more than 130 people at their site in Bolton. The company is well invested and benefits from best-in-class technology in terms of cylinder design and manufacturing.
Richard Harrison, partner at Enact, said: “This transaction represents a significant milestone for Edbro and will enable the business to pursue its ambitious growth plans in the coming years. We’re thrilled to have secured this funding support from Shawbrook Bank and we’re looking forward to supporting Edbro in the next stage of its growth journey.”
Andy Pickford, FRP
Andy Pickford, debt advisory director at FRP, said: “Edbro is a world-leading manufacturer and has considerable growth potential both in the UK and overseas.
“This funding and support from Shawbrook Bank will provide the business with considerable strength and the working capital to secure new contracts while continuing to invest in the future of the business.”
Matt Greenhalgh, director of corporate lending at Shawbrook Bank added: “SMEs like Edbro represent the engine room of our economy and ensuring they have the support they need to grow will play a vital role in delivering the recovery on a local and national level.”
