Close Brothers Invoice Finance is delighted to welcome new customer, AK Stoddart Ltd, having successfully enabled the acquisition of the business via a comprehensive, structured asset based lending (ABL) facility.
AK Stoddart is a leading beef processing company with a sizeable share of the Scottish beef cattle market. They guarantee a fully integrated supply chain and deliver excellent quality Scottish beef to a loyal customer base, along with the highest levels of service and support.
Neil Stoddart was looking to sell the business, which was established some sixty years ago. Close Brothers was approached by the investment team with an opportunity to provide the right level of funds to facilitate the acquisition and ongoing working capital thereafter.
Close Brothers worked hard to understand and appreciate every aspect of the business, including their reputation, the quality of the supply chain and the customers throughout Scotland and the rest of the UK. In addition, the management team demonstrated strong plans to maintain the structure of the already successful business in the future
We were able to offer a significant ABL arrangement, consisting of invoice discounting, funding against their stock, property and plant and machinery. In addition, top up cash flow finance was used in order to complete the deal.
AK Stoddart and their investment team opted to partner with Close Brothers because of the amount of funds we could provide, our consistent approach and the strong reputation of the Close Brothers brand.
Neil will continue to be involved with the business over the next few years on an advisory basis, and will retain a significant investment in the company. He observed: “We have had a long-standing relationship with the new management team who share our values with regard to our people, customers and suppliers. The acquisition will provide for business continuity and will enable A.K. Stoddart Ltd, a recognized market leader, to continue to grow.”
The company will be run on a day-to-day basis by Grant Moir, who will be supported by the excellent Stoddart management team. Grant commented: “We are delighted to have the opportunity to invest in the Stoddart business. We have known Neil and his team for some time and have always been impressed with their professionalism and strong value set. It is exciting for us to be investing in a strong Scottish company that produces such an exceptional quality product. The business benefits from excellent relationships with both its customer base and the Scottish farming community and we look forward to working closely with both to further develop the Stoddart brand over the coming years.”
The business remains a strong independent Scottish company that, working closely with Scottish farmers, will continue to play a key role in the journey of the very best Scotch and Aberdeen Angus beef from farm to fork.