Renthal

Co-founder buys back global brand Renthal with £5.4m funding line from Praetura



The Challenge
Renthal is a global leader in the design, manufacture and sale of products for the motorcycle and cycle markets. The business, which turns over £12m a year and employs 90 staff, operates from a 41,000 sq. ft manufacturing and engineering facility in Bredbury, Stockport. Renthal’s products are used by Honda, Kawasaki and Suzuki as original equipment for their performance motocross models. In addition, its products have been used by nearly 200 motorcycling world champions and, since it expanded into the cycle products industry in 2010, by six world mountain biking champions.

Henry Rosenthal, the co-founder of the global motorcycle and cycle accessories brand sought to buy back the business 12 years after he sold it to Motorsport Aftermarket Group (MAG).

The Solution
Praetura Commercial Finance structured a £5.4m asset based lending (ABL) transaction, comprising a confidential invoice discounting line, a stock revolver, a plant and machinery term loan and a cash flow strip, enabling the business to regain independence from the group and power ahead.

Tom Wade, Managing Director of Renthal Limited commented: “Renthal is a world-leading brand, with great products and a dedicated workforce. Next year will be our 50th anniversary and, with Henry’s support and as an independent business, we have an exciting future.”

He continued: “Since Renthal is a premium brand we recognised that to buy back the business would require a strong quantum of debt funding. As business owners themselves, Praetura Commercial Finance were very commercial and made immediate decisions to get the deal over the line within a very tight timeframe. The ABL facility and cash flow loan has given us the extra headroom we needed to get the business off to a flying start.”

The Transformation
Stuart Bates, Commercial Director of Praetura Commercial Finance, said: “Renthal is a superb global brand with its manufacturing heart in Manchester. We are delighted to have provided the funding to bring the ownership back into the hands of the management team. With its strong brand, dedicated workforce and rigorous product development, together with on-going working capital support, this is an exciting time for the business as it realises its potential through its continued expansion into the cycling market. We would like to wish Tom and the management team every success in the future.”