£75m funding deal to support growth
Asset Alliance Group, which has its headquarters in Wolverhampton, has put a £75 million funding deal in place with the Royal Bank of Scotland to support future capital investments and growth.
AAG employs 80 people between the base at Edwin House, Boundary Industrial Estate, Stafford Road, and its site in Lanarkshire.
The company, which sells new and used trucks and trailers and provides commercial vehicle finance, was founded in 2011.
It approached RBS after expanding into the bus and coach market with the acquisition of Hampshire-based specialist broker Forest Asset Finance in January.
Willie Paterson, chief executive of AAG, said: "Our approach is quite unique because we don't just lend and provide a range of flexible finance packages, we purchase, refinance and procure for our clients. This approach is proving popular and, as a result, we are now one of the fastest-growing companies in our sector. By adding bus and coach finance to our services we can widen our client base and our portfolio of products and services."
The syndicated asset-based lending deal, led by RBS, will help AAG's plans for organic growth and targeted acquisitions.
Mr Paterson, former managing director of Alliance & Leicester Commercial Finance said the funding would support its future growth strategy and diversification into new sectors. AAG's accounts for 2014 showed turnover grew to nearly £25m, although it made a pre-tax loss of £2.8m.
The ABL facility is structured against the company's considerable portfolio of vehicle assets.
EY, the former Ernst & Young, supported the deal through its capital and debt advisory team led by Jashen Josson.
"Our approach is quite unique because we don't just lend and provide a range of flexible finance packages, we purchase, refinance and procure for our clients. This approach is proving popular and as a result we are now one of the fastest growing companies in our sector. By adding bus and coach finance to our services we can widen our client base and our portfolio of products and services," said Mr Paterson.
Matt Broomfield, business development director for Royal Bank of Scotland Asset Based Lending in the Midlands, said: "I am delighted that we have been able to support AAG and its hugely-experienced management team with this significant ABL facility.
"The company has achieved impressive growth during the last five years and provision of this revolving facility will allow further development of their successful growth plans."