Established in 1946, Long Crendon (near Aylesbury) based Thame Workholding - a world renowned UK manufacturer of chuck jaws and workholding equipment - successfully completed a management buy-out (MBO) mid pandemic, thanks to the bespoke funding support from Metro Bank.
“Just at the time when steel prices were rising rapidly, Thame Workholding’s now Managing Director, Mark Thomas approached us to help fund the proposed MBO”, explains Metro Bank Commercial Banking Director, Mike Gale. “Mid pandemic, the timing may have seemed less than opportune, but together with the Local Director, Lorna Nichol from Thame’s local Metro Bank store in Aylesbury, we looked to create some bespoke funding solutions to enable the sale to take place.”
Thame’s previous owners wished to retire and the rapid completion of the deal was fully appreciated by all parties involved. For the MBO to be successful, Thame Workholding worked closely with Metro Bank to not only expedite the sale, but also to set up a full banking relationship and line of credit post the MBO.
The Metro Bank bespoke package comprised a variety of funding options including asset and invoice finance and term debt. Metro Bank can create bespoke finance for its clients to ensure a customer gets a greater percentage of their deal funded by the Bank. With Thame Workholding’s array of options, Metro Bank was able to fund the entire deal by refinancing existing machinery owned outright and using the strong debtor book which resulted in a reduced financial contribution from the buyers as it provided strong security for the Bank to be able to support and fund the sale.
Mark Thomas, Managing Director, Thame Workholding explains: “I met Lorna Nichol at a local network event and we talked about how together with my management team, we might fund the proposed MBO. I was very vocal about my frustrations with other banks, Lorna listened and asked if we could talk further as she believed Metro Bank might be able to help. Needless to say the rest is history.”
Lorna Nichol, Metro Bank’s Local Director said ‘’Mike and I worked together with three teams across the Bank - asset finance, invoice and credit. Together, we were able to create a package of bespoke funding solutions to enable the sale to take place, in ways the customer didn’t even know were possible. It has been a great deal to be involved in.
“We have built a strong relationship with Mark and his team – so much so they have already recommended us to other businesses they work closely with”, added Lorna. “As a community bank being able to help and support local businesses is really important to us as it helps keeps local talent and income generation within the local community, ultimately benefitting everyone.”