The SME funding partner, Ultimate Finance, has provided Albion Drilling Group Ltd with a £1m Asset Based Lend, consisting of a construction finance facility, alongside an asset finance package, to support a management buy-out.
Ultimate Finance was recommended to Albion Drilling Group and stepped in to finance the deal, after the management team were unable to secure the full amount they needed from their incumbent bank to finalise the purchase of the business.
The Stirling-based company was established in 1986, and has become the UK’s largest independent drilling contractors, working with the government, construction companies and public authorities on multi-million-pound projects.
Over the past three decades, Albion Drilling Group has been owned and operated by its founder Eamond Murray, who has expanded the business throughout the UK, Europe, the Middle East and Asia and built up a team of 50.
Murray now plans to retire, with ownership of the company passing to members of the senior management team, including Financial Director Jamie Cleghorn.
Speaking about the business Jamie said: “Albion Drilling Group has proven itself to be a successful business which has thrived, even during some tough global economic challenges. When the opportunity to invest in the future of the company came up, it was an easy decision for us to make.
“We turned to Ultimate Finance after our bank were unable to offer us the finance we needed and it was one of the best decisions we have made. We were immediately provided with a dedicated senior point of contact, who supported us at every step and liaised with all parties throughout the process, essentially becoming an extension of our team – we couldn’t have found a better funding partner.”
Ultimate Finance has two decades of experience supporting SMEs, and have provided thousands of small business owners and managers with over £1 billion in cash solutions they need to grow.
Euan Bell, Regional Director at Ultimate Finance, managed the Albion Drilling Group deal.
Commenting on the transaction, Euan said: “Jamie and his colleagues came to us after seeking finance elsewhere and finding that that they were unable to secure as much as they needed, despite the business being profitable and having a healthy future outlook.
“The team now have ambitious and exciting plans for Albion Drilling Group. We are delighted to be able to support their success and look forward to a strong working relationship beyond.”
Ultimate Finance has experienced unprecedented growth across its commercial finance divisions in the past 12 months, with a 35% increase in lending (funds in use).
The Albion Drilling Group deal represents a significant milestone for Ultimate Finance in the Scottish marketplace and brings the number of deals completed to over 100 since the opening of its Scottish offices in 2015.