Praetura Commercial Finance (PCF), in partnership with Praetura Asset Finance (PAF) have provided a £12.5m funding package to support the growth ambitions of logistics and warehousing group OTIF.
The deal enabled the acquisition of John Truswell & Sons, the family-owned distribution business based in Barnsley, in a deal that marked OTIF’s third acquisition in five years. Additional funding support included in the package allowed the alignment of finance facilities across all Group companies.
OTIF is owned and operated by entrepreneur Graham Darnell, and the acquisition enables the group to strengthen its distribution network. Recognising the opportunity for expansion, Darnell is planning to increase Truswell’s haulage capacity by more than 17 per cent, as part of the company’s expansion plans. This will be supported by the wider OTIF Group’s network combined with Truswell’s established infrastructure, including its warehousing office facility in Barnsley.
The deal was transacted by senior members of the teams at PCF and PAF, in constant dialogue to ensure all entities delivered on time, giving the businesses involved the added advantage of dealing with one Group (Praetura) providing all the funding elements, making it a much simpler and smoother process for both the broker and the client.
Praetura Asset Finance’s portion of the deal provided an asset refinance facility totalling over £1.6m, through the refinance of multiple assets including HGVs, trailers and cars.
Graham Darnell, managing director at OTIF Group, said: “Praetura immediately understood our long-term goals and what the company was trying to achieve. The funding process was straightforward, efficient and their team ensure we completed within our target timeframe”.
The deal was introduced and managed through Praetura’s long-term broker relationship with PMD Business Finance, a finance company known for its continued success in the structured finance arena. Callum Bull, structured finance director at PMD Business Finance, said: “We are delighted to have supported Graham in what was an important deal for the group’s future growth plans. It was refreshing to work with a lender who was able to take a commercial approach across multiple products to deliver the required funding package”.
Stuart Bates, founder and commercial director of Praetura Commercial Finance, said: “Over the last six months, Praetura has witnessed a substantial increase in the number of funding applications submitted as UK entrepreneurs look to rebuild and grow after the pandemic.
“Many entrepreneurs and management teams feel empowered to take their businesses into their own hands. We’ve seen a real increase in funding requests to support management buyouts, management buy-ins and acquisitions, as well as an interest in refinance deals that give businesses the financial flexibility to get back on track.
“The pandemic has clearly driven more entrepreneurs to specialist finance providers who will take the time to understand their business’ strengths, weaknesses and assets, compared to more institutional lenders who will only focus on their previous lending history. The added bonus of working with Praetura is the collaborative approach between the companies in our lending division, which increases the options available”.
Praetura Commercial Finance and Praetura Asset Finance are part of Praetura Group’s Lending Division, which also includes Praetura Invoice Finance and Kingsway Finance. Through its lending division, Praetura offers small and medium sized businesses an alternative to traditional institutional lenders. It supports clients across almost every industry sector, providing funds between £5,000 to £15m to help clients meet their own strategic objectives, be that addressing daily cash flow challenges or funding large scale acquisitions.