Birmingham finance funds expansion of Midlands tractor dealership

BIRMINGHAM finance has enabled a Midlands tractor dealership to expand its operation across the region.

The Birmingham Corporate Banking Centre of The Co-operative Bank provided Dunstall Holdings Ltd with the funding it needed to complete the acquisition of fellow John Deere dealer Rea Valley Tractors Ltd. The deal has not been disclosed.

Rea Valley, based in Shrewsbury, is one of the biggest dealerships of its kind in the UK. Dunstall, based in Derbyshire, completed the deal on behalf of its trading subsidiary Agricultural Industrial Services Ltd.

Simon Clarke, chairman and owner of Dunstall Holdings, said: “This acquisition significantly enhances the group’s scale and reach which will allow us to invest further in our facilities and staff to ensure that our customers continue to experience marketing leading levels of service.”

AIS, based at Ashacres Industrial Park, Draycott in the Clay and RVT are the John Deere dealers responsible for Staffordshire and Derbyshire and Shrewsbury and mid-Wales respectively. Both businesses will continue to trade under their separate identities, having retained all existing staff and facilities.                                 

Dunstall said it now planned to invest in the business and plans are underway to relocate RVT’s main site from Pontesbury to a new bespoke building on a seven-acre site on the outskirts of Shrewsbury later in 2011.

“When we eventually move to the new Shrewsbury premises, we will have a great deal more space with purpose-built workshops, increased spare parts capacity and a new style John Deere Place showroom, as befits a flagship dealer,” said Robert Ball, managing director of AIS.

Justin Sparks of Springboard Corporate Finance, who acted as lead adviser to Dunstall Holdings, said: “We were delighted to support Dunstall Holdings on this significant transaction. It is an encouraging sign that financial institutions are beginning to seek to support businesses making strategic acquisitions.

“In addition, it further demonstrates that the Midlands’ finance community can help well run businesses to access finance and get deals done.”

In addition to funding the acquisition, The Co-operative Bank also financed the new headquarters building and working capital facilities.

Richard Hornsey, Senior Business Development Manager at The Co-operative Bank’s Birmingham Corporate Banking Centre said: “This was a great opportunity presented to us by Springboard to finance the growth of AIS. I am delighted to have been given the opportunity to provide the funding to assist with this acquisition. I am sure this will provide the platform for an exciting future for this group of companies”

Lichfield solicitors Keelys LLP, led by head of corporate David Williams and supported by Martyn Brierley, James Chisholm and Ravi Sandhu, acted for Dunstall Holdings and David Beech from Irwin Mitchell Solicitors provided legal advice to The Co-operative Bank.