Secure Trust Bank Commercial Finance has provided a £5m asset-based lending facility to ladder and scaffolding manufacturer Lyte, supporting an investment by private equity house Breal Capital.
The deal sees the business bought out of administration, saving 185 jobs at the Swansea-based company.
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Secure Trust Bank Commercial Finance provided a full asset-based lending facility to Lyte following a number of trading challenges faced by the business, including an increase in the price of raw materials. The £5m funding line consists of receivables, inventory, plant and machinery and real property, and will enable the business to improve working capital and support the firm’s growth strategy.
Founded in 1947, Lyte manufactures aluminium and glass fibre access equipment for a wide range of sectors and locations around the world. The firm was responsible for providing ladders to support Sir Edmund Hillary’s ascent to the summit of Mount Everest in May 1953, as well as appearing in numerous films and DIY television shows.
David Parsons, regional managing director at Secure Trust Bank Commercial Finance, said: “With more than 70 years’ experience, Lyte has an established history in its sector, and has been part of an iconic expedition. We’re pleased to be able to help the business, as well as secure the jobs of 185 staff, particularly given its significance in the local area.
“Following a turbulent 2018, Lyte now has the support from both ourselves and Breal Capital to enable it to achieve its growth plans, and we’ll be working closely with the management team to build on this in the coming months.”
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By GlobalDataMick Welden at Breal Capital, said: “Lyte is a major employer in the Swansea area, and the preservation of these jobs was a key part of the transaction. With this deal, we’re keen to stabilise the business and improve operational efficiencies, making Lyte a stronger and more prosperous company.
“The Lyte management team has worked incredibly hard to this point and have been very enthusiastic to the programme of change that we have set out. We look forward to working closely with them over the coming months.”
Secure Trust Bank operates principally from its head office in Solihull, West Midlands, and had 862 employees (full‐ time equivalent) as at 31 December 2018.
Last month Secure Trust Bank Commercial Finance provided a £5m invoice finance facility to BCW Manufacturing Group, as the automotive manufacturer looks to expand its factory space and production line.
