Asset Finance solutions secures the future of two growing businesses
Find out how Close Brothers Asset Finance helped two businesses with tailor-made funding solutions and supported the development of future growth plans.
Established in 2008, Denbow International Limited was originally formed to buy and sell quality used plant and machinery equipment from around the world. But due to demand for outsourcing in the UK, Denbow changed its format into a mobile plant rental business to provide flexible solutions on medium to long term contracts in the extractive, waste, construction and logistics industries.
With a sizeable fleet of medium to large modern machines in various locations around the UK, Denbow provides heavy duty plant equipment for use on large civil engineering projects.
The investors, common to Denbow, recently invested in Duo Mineral Processing Ltd – trading since 2010, it is a market leading company providing the aggregate, recycling and material handling industries with processing solutions. It undertakes quarry and mineral excavation projects, usually with the purpose of supplying aggregates to large engineering projects.
In order to grow both businesses further, the investors planned an additional company acquisition, whilst Duo needed finance options to enable purchase of various assets such as wash plants and crushers for major contracts to clients. Close Brothers Asset Finance already has a long-standing relationship with both companies and has previously financed plant for Hinckley Point power station and most recently helped with the acquisition of a company to improve Denbow’s turnover to circa £20 million.
Owen Bolt, Director at both Denbow and Duo met with Mike Harrison, Area Sales Manager at Close Brothers Asset Finance to discuss requirements. Following a review of both company accounts and what was needed, Mike proposed a refinance product for Denbow against its assets which would raise funds to help with the planned acquisition of another company which Denbow considered to be a good strategic fit. For Duo, Mike proposed Hire Purchase product solutions to enable purchase of the required assets.
The investors’ ongoing strategy is to continue to expand and grow their business through acquisition and organic growth whilst also maintaining long term contracts with blue chip companies. With the new assets in place, Duo will continue to stock an unrivalled range of spare parts from stock and offer processing solutions for its customers.
Owen Bolt commented: “Thanks to the support and advice we have received from Mike and the team at Close Brothers, we can now grow both businesses and take them to the next planned stage. This in turn will allow us to compete for and take on larger contracts whilst growing our position in the UK.”