Ultimate Finance, a specialist in asset-based lending, has once again partnered with a prominent construction sector group to facilitate a Management Buy-In (MBI) for a key road surfacing and civil engineering contractor.
This move is part of the group’s strategic expansion into geographical areas not yet covered by its operations.
The group, which provides a diverse range of services across the UK construction sector through trusted providers, had previously secured a £1m Structured Finance facility from Ultimate Finance to facilitate an MBI in 2022. Encouraged by the support they received, the group returned to Ultimate Finance to facilitate the latest acquisition.
Paul Mak of Pomegranate Commercial Finance, who introduced the group’s managing director to Ultimate Finance, said: “The support and funding they received last year was exactly what they needed to get the deal over the line. So, when this acquisition opportunity arose, it was only natural to make Ultimate Finance a part of it”.
Recognising the unique funding needs of the group, Ultimate Finance tailored a financing solution offering a £2m Construction Finance facility alongside an additional £700k through the refinancing of some hard assets.
John Davies (pictured), the regional director at Ultimate Finance, said: “We take a holistic view of a client’s range of available assets to unlock as much liquidity as possible.
“This allows us to provide up to £10m in funding, supported by a full Deal Team to manage complex facilities and a single point of contact for the client to ensure seamless communication.”
The structured finance approach at Ultimate Finance allowed the group to secure the funding needed for the transaction without the burden of sourcing other forms of funding that may come with hefty deposits or higher interest rates.
The acquisition involves a well-established company employing around 80 staff members, all of whom will be retained as part of the MBI terms. Mak added: “In the current economic climate, this came as a great relief to all involved.
“With Ultimate Finance’s funding in place, the group will complete the transaction and is already looking forward to combining the business’ existing customer base to its own to achieve organic growth this year.”
