Shawbrook Business Credit funds £2.4 Million Management Buy Out for Trafford Rubber
01 May 2015
Shawbrook Business Credit has backed the Management Buy Out (MBO) of Trafford Rubber Products Limited, not only enabling the management team to acquire the business from existing shareholders but also to provide ongoing working capital for growth.
The £2,431,325 asset-based lending facility consisted of a £1,000,000 Confidential Invoice Discounting line, a Property Term Loan for £731,325 and an additional Cash Flow Term Loan of £700,000.
Founded in 1986 and based in Trafford, Manchester, Trafford Rubber Products is an industrial manufacturer of rubber products, tapes, hoses, pipe wrap, electrical tape, self-fusing tapes and many other specialist items. The business operates out of two manufacturing and additional storage warehouse facilities, offices and laboratory space, totalling 26,000 square feet.
The management team has effectively run the business for a number of years and the shareholders had taken more of a back seat.
Chris Brindle, commercial director at Trafford Rubber Products said: “Shawbrook Business Credit’s asset-based lending facility provided a significant proportion of the initial purchase consideration and a continuous flow of working capital to fund the business post-buyout. As a business, we have a clear strategy for growth and Shawbrook Business Credit features strongly in our future plans.”
“The current takeover was proposed by myself only in October last year and of the funding sources available to us Shawbrook proved the most responsive and indeed the quickest to put together the right deal. Rather than treating us as just an account number, they would provide us with a high level of personal service. We found the deal process itself very smooth and wouldn’t hesitate to recommend Shawbrook Business Credit for anyone embarking on an MBO.”
Tim Hawkins, commercial director at Shawbrook Business Credit commented: “Trafford Rubber Products has an impressive reputation in its market and the management team has overseen the significant growth and maturity of the business to its current strong position. Shawbrook Business Credit is committed to supporting UK manufacturers and we are delighted to back Trafford Rubber Products in achieving their ambitions.”