Flamefast Group is the UK market leader in the design and build of gas detection systems and engineering workshops for schools, colleges and universities. Flamefast actively sought acquisition funding to purchase Futuris, a complementary group of businesses, in order to facilitate its long-term growth strategy.
Futuris is a wholesaler and distributor of welding, safety and industrial equipment and the group comprised Weldspares and Safety Logistics. Weldspares is the largest independent wholesale distributor of welding, safety and industrial equipment, supplying the UK and Ireland and beyond.
Prateura Commercial Finance structured and delivered the £4,350,000 asset based lending package to fund the acquisition and provide on-going working capital for further expansion, The facility consisted of a £3,500,000 confidential invoice discounting line, together with a £500,000 inventory facility and a £350,000 cash flow loan.
Part of the acquisition also involved the injection of £1M of capital into Weldspares, allowing them to invest in an extensive stock portfolio to be housed within its additional 28,000 square foot warehouse in Warrington. This is supported by their established advanced IT logistics systems, allowing next day delivery to customers as and when required.
Steve Swinden, CEO of Flamefast Group commented: “The acquisition funded by Praetura Commercial Finance has taken us from an £11m turnover business to £19m, making our combined group a substantial player in our industry.Following the introduction of the new funding facility, we have already recorded our biggest invoicing month in the history of the company.”
Stuart Bates, Commercial Director of Praetura Commercial Finance, said: “Flamefast’s acquisition of Futuris has been enabled through unlocking a higher volume of funding through asset based lending. This acquisition has already enabled the Group to scale to a point where it can take advantage of growing opportunity and demand. We are delighted to support the extended Group as its exciting growth story unfolds.”