KBC Business Capital

KBC Business Capital, the asset-based lending (ABL) division of Belgian banking group KBC Bank has provided a £17.6m ABL facility to support the refinancing for Avocet Hardware. The funding package is secured on accounts receivable, inventory and property.

Avocet Hardware is one of the country’s leading manufacturers and distributors of door and window hardware and is the UK’s largest supplier of fixings and hardware products to the main DIY retailers. Operating from Brighouse in West Yorkshire the company underwent a management buyout in late 2007. Since then the management team have developed both the product range and manufacturing strengths within the business to outperform their market sector in highly testing market conditions.

Alistair Hood, regional director at KBC Business Capital, said: “We first started talking to the management team at Avocet in late 2008. From the outset we have been impressed with the ability of the team to react to difficult market conditions and choose the correct course of action to ensure the company survived the worst of the recession. With the new funding in place and evidence of a return in market confidence we look forward to helping the business take advantage of all potential growth opportunities.”

Ian Jones, CEO at Avocet, added: “The KBC team were outstanding from the start – helping to structure an excellent refinancing facility. Throughout the process, the KBC team were genuinely impressive – both from a technical perspective, in structuring the deal, and from a personal perspective, in building great relationships. They really are a great team and I’m delighted that we will have the opportunity to work with them in the years ahead.”

Avocet was advised by KPMG, Shoosmiths solicitors and Eastwood Anglo Corporate Finance. KBC Business Capital was advised by KPMG, Wragge & Co, and SHM Smith Hodgkinson.