West Bromwich building firm Ash & Lacy charts growth with £7m locally-advised funding deal
A WEST Bromwich construction products supplier has secured a £7m funding package to support the ongoing growth of the business in a deal advised in the West Midlands.
Ash & Lacy Building Systems Ltd, advised by Cattaneo, has secured the package from Close Brothers Invoice Finance. The funding will provide it with additional financial flexibility as it continues its capital investment programme aimed at improving efficiency, growing sales and in creating new jobs.
Cattaneo had previously advised on the £5m acquisition of Ash & Lacy from Hill & Smith in 2011.
Ash & Lacy is a £23m turnover manufacturer and distributor of metal external building envelope systems. Following a period of investment in enhancing manufacturing capability, including bringing previously sub-contracted processes in-house, the firm is now poised to expand rapidly into new product areas.
Close Brothers Invoice Finance provided a full asset-based lending solution that refinanced existing acquisition debt while providing additional funding to support the business’s continued capital investment programme and enhanced working capital facilities.
Jonathan Evans, Chief Executive Officer at Ash & Lacy, said: “Cattaneo’s knowledge of our business and objectives, as well as their practical and efficient approach, meant that we did not hesitate to seek their advice on sourcing a new funding package. We are pleased to have selected a partner in Close Brothers whose funding will allow us to make investment decisions that will have an immediate impact on the growth of our business.”
Keith Rose, Senior Sales Director at Close Brothers Invoice Finance in Birmingham, commented: “We are delighted to have the opportunity to work with Ash & Lacy. We were extremely impressed with its market position, manufacturing quality and importantly, with its highly experienced and motivated management team that knows exactly where it is taking the business.”
Martyn Pilley, of Cattaneo, added: “The construction sector has been slow to emerge from recession and remains a challenging environment for many banks. However, Ash & Lacy has demonstrated the results that can be obtained from carefully targeted investment and this appealed strongly to Close Brothers who have tailored a financial package that will meet the needs of a forward looking business.”
Pilley led the Cattaneo team that advised Ash & Lacy working with Paul Bennett, of George Green & Co, who provided legal advice while Close Brothers was advised by Jon Bew and Nicola Raine, both of Irwin Mitchell.
