Specialist asset-based lender, Secure Trust Bank Commercial Finance has provided a £6.5m facility to access equipment manufacturing business Lyte to support its merger with fellow market leader, LFI.
Swansea-based Lyte, specialises in premium-grade aluminium and glass fibre ladders and other access equipment, has over 75 years of experience in the industry. In 2019 it secured a £5m facility from Secure Trust Bank Commercial Finance to support an investment by private equity house Breal Capital, which allowed it to overcome trading challenges.
LFI is a leader in the ladder manufacturing industry and produces aluminium, steel, timber, and fibreglass access equipment for businesses. It primarily operates in the UK but is a supplier for industries in Europe and beyond.
The merger brings both businesses together under Breal Capital's portfolio, which specialise in the manufacturing sector.
Combining two of the market's biggest players, the merger is a significant event for the access equipment industry. With over 140 years of combined experience in supplying access equipment, the merger will provide support to both businesses so they can benefit from increased economies of scale and improve their marketing and administration functions.
In the short term both businesses will continue to operate independently with a medium-term plan to integrate the two businesses to improve customer service and leverage synergies while maintaining the dual brands. Lyte/LFI will continue to offer customers the highest quality and broadest range of sustainable products in the marketplace. It also gives both businesses the resources to accelerate product development, account management and customer service.
Michael Walton, Director at Lyte, said: "The merger of Lyte and LFI marks a new milestone in our journey and we are excited about the opportunities it will bring. We've already achieved strong growth as a business in key strategic markets, and this merger positions us well to continue capitalising on this. With the support of Breal Capital and Secure Trust Bank we've been able to navigate the merger process with ease. By combining both companies, we are able to accelerate product development and continue providing customers with a market-leading service, which is the most important thing to us."
Debbie Partridge, Regional Sales Director at Secure Trust Bank Commercial Finance, said "Having worked with Lyte and Breal in 2019, we are delighted to continue our relationship and support them in reaching new heights through the merger with LFI. This once again highlights the success of ABL and private equity working together and unlocking working capital to help businesses flourish. I look forward to working with Breal Capital and Lyte in the future, continuing to reach new milestones."
Mick Welden at Breal Capital said: "We are thrilled to have completed this transaction with Secure Trust Bank and Lyte, which combines two of the access equipment industry's market leaders. Since joining our portfolio, Lyte has demonstrated real growth potential, and the addition of LFI will truly complement its existing offering. Secure Trust Bank's financing solution will allow us to focus on integrating both businesses in the best way and continue to offer customers market-leading access equipment."