Close buys Finance for Industry

03/02/2016

In an interesting move that showed the private equity players that theirs is not the only game in town, Close Brothers Asset Finance (“CBAF”) has bought Finance for Industry (“FFI”), a leading specialist finance broker for the engineering, print, plastics and machinery sectors. FFI also owns Finance for Industry Services Ltd, an insurance sales operation with a net worth in 2014 of £22k.

No purchase price has been publicly disclosed, though 2014 accounts for FFI show net worth of £1.32 million and block discount financing creditors of £3.24 million. The profit for 2014 had risen 47 percent to £1.19 million, and given the very buoyant market in 2015, one could safely estimate that profits and net worth had risen substantially again. The block discounting line and related charge (to ING Lease UK) were satisfied in December 2015.

Headquartered in Kings Langley and with presence in the North, Midlands, South, and South-West, FFI’s business covers the whole of the UK and is run by three experienced directors; Andy Curran, Stewart Ainsley, and Steve Ackerman. CBAF states that the acquisition will expand and strengthen its existing offering in the market.

FFI will be integrated into the industrial equipment division of Close Brothers Asset Finance, under Managing Director, Steve Gee.  In the short term, it will continue to operate under its own brand. Finance for Industry’s sales team will remain unchanged, with existing customers able to maintain the same contacts following the deal.

Mike Randall, CEO of Close Brothers Asset Finance, said, “Finance for Industry is an exciting and complementary addition to our industrial equipment division. This acquisition will bolster our set of services, and is perfectly in line with our strategy, enhancing our existing offering and providing access to a new customer base.

“The industrial market continues to evolve rapidly and we are always on the lookout for opportunities to grow and to acquire strong and ambitious companies that match our expansive business model. Today’s acquisition is evidence of this and will make a significant contribution towards achieving our long term goals.”

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