Arbuthnot Commercial Asset Based Lending (ABL) has supported a seven-figure management buyout (MBO) of Barons Contract Furniture, a specialist contract furniture manufacturing business located in Lytham Saint Annes.
Led by managing director, Garry Smith, and backed by investment from River Capital, the MBO signified the first investment from River Capital’s new North West Private Equity Fund.
Arbuthnot Commercial ABL delivered a structure that enhanced post-completion financial headroom.
Alongside Smith, the board was bolstered by the introduction of Gary Lasham as chairman, and David Meltham as non-executive director.
Andrew Rutherford (pictured), commercial director at Arbuthnot Commercial ABL, added: “The successful completion of the sponsor-backed MBO of Barons is a testament to the dedication and collaborative efforts of the entire team.
“This deal would not have been possible without the invaluable contributions of Paula McGrath of Brabners Deal Advisory, who helped us navigate through the complexities of the process, and River Capital, a highly supportive sponsor within the region.
“We look forward to a fruitful partnership with Barons and are committed to providing flexible working capital funding post-buyout to help the management team drive their continued success.”
Paula McGrath, head of deal advisory at Brabners, said: “We have a history of successful collaboration with Arbuthnot Commercial ABL, and we have confidence that as long as we structure a deal that aligns with our feasibility, Arbuthnot will deliver.
“Their understanding of the credit requirements, along with their sensible debt levels, pricing, and structure, instil a high degree of certainty in our transactions.
“With the investment from River Capital and the funding from Arbuthnot, the future of the business is exceptionally promising, with a robust order book and exciting prospects ahead.”
