Refinance - JP Coaches
JP Coaches is a well-established, leading provider of coach hire in the North East of Scotland. The company has a fleet of 32 modern, well equipped buses in a range of sizes available for corporate, private and contract hire.
Opportunity for expansion
JP Coaches was keen to expand the business. In early 2014, they identified an opportunity for growth that would enable them to extend their fleet and widen their service area by acquiring coach company MW Nicoll Hirers, based in Laurencekirk near Aberdeen.
MW Nicoll Hirers is a long-established coach company with a fleet of over 50 vehicles and a loyal customer base in the greater Laurencekirk area.
Minimising the impact on cash flow
The company’s Managing Director, Jock Petrie was keen to seize the opportunity but wanted to ensure that any impact on cash flow was minimised. As a long-standing customer of Close Brothers Asset Finance, Mr Petrie contacted his local Sales Manager, Ross Pickburn to discuss his options.
Following a meeting to discuss the plans, Mr. Petrie decided to proceed with the purchase of MW Nicoll and once the sale was agreed, Close Brothers Asset Finance would refinance the MW Nicoll fleet of vehicles.
The refinancing of the MW Nicoll fleet provided the necessary capital to fund the buyout without impacting on cash flow.
Larger fleet and wider customer base
The buyout was a success and enabled Mr Petrie to expand his business, taking over the existing MW Nicoll coach hire company in Laurencekirk. This has resulted in the overall company fleet increasing by over 50 vehicles and an increase in prospective new customers through the MW Nicoll customer base.
Through refinancing the MW Nicoll fleet, Mr Petrie ensured that cash flow was uninterrupted and did not impact on existing business operations.
Mr Petrie said: “I’ve been dealing with Close Brothers now for over 20 years and I’ve always found them to be very helpful and obliging so naturally they were my first port of call when the opportunity arose.
“Our agreement gave us the confidence to go ahead with the purchase of MW Nicoll, safe in the knowledge that Close Brothers would approve the refinance facility once the sale was agreed.
“Ross made the process very easy, putting the deal in place quickly with the minimum of fuss, meaning that we could focus our efforts on the new business.”
