The banking and finance team at UK law firm Shoosmiths has advised its client Arbuthnot Commercial Asset Based Lending on an asset-based lending facility for the purchase of mechanical contractor Doby Verrolec by Chiltern Capital from Verrolec’s existing parent company Heitkamp & Thumann.
The facilities provided by Arbuthnot include receivables, inventory, plant and machinery, property and an additional cash flow loan to provide the quantum of funding required to complete the acquisition and fund working capital thereafter.
The team was led by partner Jon Bew assisted on the finance side by associate Alistair Hayes, with support from a corporate team of senior associate Nick Little and associate Mike Dyer, as well as real estate support from legal director James Benedick.
Jon said: “This has been a collaborative process across various divisions at Shoosmiths and shows how we can draw on the experience of teams familiar with this type of acquisition and this type of facility – highlighting our strength-in-depth in the ABL market. We are delighted to help Arbuthnot in yet another ground-breaking transaction.”
This is the fourth complex sponsor-driven carve out transaction that Arbuthnot Commercial ABL has entrusted to Jon’s team over the past two years, the others being Tivoli Group, Incodia and Pyroban.
James Marler, business development director (London & South East) at Arbuthnot Commercial ABL, said: “We have a long-standing relationship with Jon and his team and they’ve been invaluable throughout our early days to establish ourselves in the sponsor driven market (as they were on this transaction). This sponsor-led arrangement falls very firmly within our specialist remit and is something that, in line with the Tivoli, Incodia and Pyroban transactions, we can offer a fresh perspective and unparalleled service.”
Doby Verrolec, based in Durham, is the UK’s leading manufacturer of ductwork jointing systems and components for heating ventilation and air-conditioning systems. The business, which has 54 full time employees, also supplies suspension systems, metal sections and profiles for a range of other applications as well as bespoke products and engineered solutions.
This transaction will allow Doby’s management team to focus on developing greater company efficiencies, launch new complementary products and expand across the UK.