GE Capital has arranged a £15m invoice finance
facility for a management buyout at commercial tyre firm Kings Road
Tyres.
The deal, which is secured against the
company’s receivables and inventory over a three year term, has
enabled the company’s management to acquire a majority stake in the
business.
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Kings Road Tyres is a wholesaler and
distributor of tyres for cars, commercial trucks, vans,
agricultural and construction vehicles throughout the UK and
Ireland and operates from a network of 12 branch depots with
headquarters in Middlesex.
Adrian Bader, managing director of Kings Road
Tyres, said a number of other financial providers were examined but
GE Capital offered the most suitable structure.
Alan Austin, regional director at GE Capital,
said the deal builds on a recent focus on the automotive industry
in Europe: “We are increasingly seeing businesses and their
investors in the automotive industry turn to asset based lending in
support of management buyouts and other business transactions, as
its ability to unlock and enable growth becomes more
well-known.”
Austin added the automotive industry in the UK
was showing signs of growth and said this kind of invoice financing
structure provides a level of flexibility which works well for
growing businesses especially at a time when traditional high
street lending is less readily available.
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By GlobalDataGE Capital lends approximately £10bn in volume
terms to UK SMEs and mid-market businesses annually, including £4bn
through Accounts Receivable Finance.
grant.collinson@vrlfinancialnews.com
