Hill & Smith has completed the sale of its wholly-owned subsidiary Ash & Lacy Building Systems (ALBS)
Ash & Lacy are leading manufacturers and distributors of metal building envelope systems and ancillary products, providing the specifier and contractor with total solutions from a single source.
A Newco, headed by the management team of Jonathan Evans and Ian French has made the acquisition, assisted by Leumi ABL, who provided a total asset based lending package of £6.85m. The package comprises of £5.75 invoice discounting facility, £0.75m stock finance plus £0.35m plant finance. The team was led by Jason Holland.
Jonathan Evans is a chartered engineer and will act as the firm’s Chief Executive while Ian French who is a former Director of Hill & Smith will be Commercial Director. Ray Harriman, who continues as Managing Director commented “This change in ownership presents a tremendous opportunity for us. It will enable to build on our hard-earned reputation and move forward with even more determination to increase our presence in a variety of new and exciting markets.”
The consideration of £5.1m, which will include repayment of net debt of £2.8m which is payable in cash upon completion and subject to adjustment, based on the capital employed of ALBS, following finalisation of completion accounts.
Hill & Smith Chief Executive Derek Muir commented “The Disposal completes our strategic repositioning of Hill & Smith away from building and construction activities and enables the Group to focus upon the core higher added value businesses involved in infrastructure products and galvanizing services.”
Leumi ABL is a specialist asset based lending subsidiary of Bank Leumi (UK) plc, part of the Bank Leumi Group they offer growing businesses a range of flexible finance solutions.
Midlands Regional Sales Director Jason Holland commented:
“Leumi ABL works closely with the Midlands dealmaking community to assist the working capital requirements of businesses that are looking to move forward in such uncertain times. This new funding facility from Leumi ABL will provide the flexibility that Ash & Lacy need to support further growth and we look forward to working with the team as they continue their expansion plans in new markets.”