Weldfast UK Limited has secured a £10m facility from Secure Trust Bank Commercial Finance (STB CF), providing the Staffordshire-based business with the funding firepower to enter its next phase of growth.
The facility was provided alongside funding from Newable Capital, which focuses on reliable, long-term investment to help profitable, well-established SMEs in the UK.
Established in 2007 by entrepreneurial brothers, Nigel and Steve Nixon, Weldfast is a leading independent wholesaler of welding, cutting and safety equipment plus associated products. The business now operates from its new, purpose-built distribution centre in Newcastle-under-Lyme. The 60,000 sq ft building covers 3.2 acres and boasts 30,000 sq ft of floor space.
Weldfast has exclusivity with several brands in its catalogue, as well as being the only manufacturer of electrodes in the UK. The facility from STB CF comes following a period of growth in the business which has seen a number of bolt-on acquisitions completed in the last 12 months. Weldfast approached STB CF as it sought a refinancing of a previous loan that would allow it to grow and prioritise long-term business development, aligning with Newable's focus on businesses with a high growth trajectory.
Steve Nixon, co-founder and Managing Director of Weldfast, said: "Long term growth is our priority at Weldfast - we want to acquire businesses and become a leader in our sector. The facility we have received from STB CF and Newable will help us to continue growing the current business whilst bolstering acquisitions and new business at the same time, allowing us to expand our current offerings to existing markets and beyond."
Matt Broomfield, Regional Sales Director at Secure Trust Bank CF, added: "It has been a delight to work with Weldfast following initial discussions we had with the team and seeing the business go from strength to strength.
"Working alongside Newable has demonstrated the ability for different financial providers to collaborate on transactions of this size, whilst collating a pool of expertise to deliver a solution that can grow with the business. This means we have been able to offer a flexible finance option that has Weldfast's plans at its core, which will aid the acquisition of other businesses and the overall growth of Weldfast over the coming years."
Peter Barrand, Managing Director at Newable Capital, said: "We are glad to have worked closely with both STB CF and the team at Weldfast to get this facility over the line at a very exciting time for Weldfast. We are committed to being long-term partners for the businesses we work with, and Weldfast has real growth potential, which we're excited to be part of.
"We look forward to seeing how Weldfast brings this facility to life through its planned and future acquisitions."