Funding deal enables MBO at digital automation business
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A £1.3m funding deal has been secured to support the management buyout of Sheffield-based technology firm Horizon Controls.
The company, which is led by CEO Craig Needham, has an ambitious strategy to offer cutting edge solutions in the growing smart building market.
It is committed to maximising increase in demand for intelligent building management system infrastructure in the UK and across Europe.
Horizon Controls’ new management team negotiated the acquisition using specialist brokerage services from Reach Commercial Finance and funding from Aldermore Bank.
The process was completed within a 12-week period following the referral of Reach Commercial Finance by the company’s bank, RBS.
Following a thorough debtor book review, Reach secured the £1.3m construction finance facility for the purchase of the company and a further six-figure amount to cover its Coronavirus Business Interruption Loan Scheme (CBILS).
A Reach team, led by Phil Trueman, worked closely with the client. The team advised on raising finance for this transaction and ensured the funding was available in time to support the MBO and subsequent trading.
Needham, said: “Reach provided us with excellent support throughout the entire MBO process – enabling us to maintain business as usual during what were unprecedented times.
“COVID-19 restrictions meant all meetings with Aldermore were undertaken online, but the entire three-month transaction was handled professionally and seamlessly.
“It was clear we were in very safe hands with all parties, and we are happy with the deal secured.”
Trueman said: “This funding solution was delivered in a tight timeframe and with many restrictions to work around.
“We are delighted with the results. It’s clearly a very exciting time for Horizon Controls.
“With a new senior management team working within a global sector that’s booming, we’re looking forward to watching the company grow and expand into different markets and countries.
“We’re also extremely grateful to Eric DeArmitt, Shaun Bennett and Joseph Simpson at Aldermore, for their assistance on this deal.”
Simpson added: “It’s great that we could support the ambitions of the management team at Horizon Controls to complete this MBO.
“Our bespoke construction finance facility provided the funding they needed to enable the business to prosper and focus on achieving its next goals.”