Cables company’s growth assured following multimillion-pound takeover
Worsley-based Batt Cables has been acquired in a multimillion-pound deal by London private equity investor, Chiltern Capital.
The firm, one of Europe’s leading distributors of electrical cables, can look forward to continued growth through a funding facility provided by specialist asset-based lenders, Secure Trust Bank Commercial Finance (STBCF) and BZ, which has a Manchester office.
STB CF provided a fully revolving receivables and inventory facility, while BZ structured a flexible hybrid facility comprising a term loan and RCF, creating a joint funding package to support Chiltern Capital’s acquisition.
The facility not only enabled Chiltern Capital’s acquisition, but has also created significant additional headroom to support the business’s working capital requirements, propelling its continued growth.
Founded in 1952, Batt Cables is a global specialist in the management and distribution of electrical cables, with facilities in the UK, mainland Europe, USA and Asia.
The business generates more than £200m in revenue and holds a wide range of around 8,000 different products in stock, serving industries including infrastructure, construction, renewables, offshore, telecommunication and transport.
James Ambrose, regional sales director at STBCF, said: “Having worked with the Chiltern Capital team on a number of recent transactions, we are delighted to have supported Joe and the team once again to deliver this landmark transaction.
“This continued relationship reflects the ability of ABL and private equity to work together in tandem with M&A activity, as well as unlocking working capital to help businesses to thrive. I look forward to working closely with Chiltern Capital and Batt Cables to continue delivering on their strong growth aspirations.”
Joe Bennett, investment director at Chiltern Capital, said: “It was a complex deal with international elements and a network of freehold properties, so to complete the transaction relatively smoothly is a testament to the STB and BZ deal teams and our advisers.
“As well as providing a smooth ownership handover, the deal provides Batt with significant financial firepower to invest in further growth, so it is an exciting new era for the company.”
Cem Yaslak, regional director at BZ, said: “The bespoke debt package gives the business the funding certainty it needs to accelerate its positive growth trajectory.”
Among the firms involved in the deal were Crowell (BZ legals), DLA (STB legals), Marriot Harrison (Chiltern legals), CIL Management Consultants (commercial diligence), RSM (financial diligence), and European Valuations (asset diligence).