Tooling firm in acquisition hat-trick
A tooling company has acquired three businesses based across the UK, including one in the West Midlands.
United Tooling Solutions (UTS) is a subsidiary of Exeter-headquartered Troy UK and is aiming to increase its operations through multiple acquisitions.
It has secured a £10m funding facility from Shawbrook as it looks to expand the business – specifically its distribution network – into the West Midlands, North West and Central Scotland.
The company already has six sites across the UK, including Bedford, Bristol, Bridgend, Derby, Devon and Dorset, and additionally has a comprehensive online operation.
The acquisitions of Kalem (the holding company of Howard Lee & Son Ltd) in Cradley Heath, Barnes JB Ltd in Lancashire, ABT Machine Tools & Tooling Ltd in Glasgow will increase UTS’ footprint by 50%.
Dave Jackson, managing director at UTS, said: “Although a relatively young organisation, we have a solid footprint already in the UK but are ambitious for this business and are looking to expand through acquisition across the country.
“After identifying a number of strategic sites, our key goal was to find a funder that would not only be capable and willing to finance three simultaneous acquisitions, but also provide us with confidence that they’d have appetite to support our business and growth plans in the future.
“Shawbrook quickly became that funder. They bought into our plans immediately, could see the potential of the business and the areas we were targeting.
“The funding facility they put together, together with the guidance and support they’ve so far given us, demonstrates to us that Shawbrook are the right funder to get UTS to where we want it to be – starting with these three acquisitions, which will grow our national footprint by 50%.”
Steve Armstrong, relationship director at Shawbrook, said: “We take great pleasure in being able to support ambitious businesses with great potential and strong leadership – and UTS is another great example.
“The ABL facility we’ve put in place will allow UTS to complete simultaneous acquisitions in three strategic areas. These acquisitions will help to grow the group by 50% and provide it with an extended footprint across the UK.”
Breeze Corporate Finance led the fund raising, with UTS being advised by Paul Bevan and Nigel Winkett.
