Leeds-based furniture manufacturer, Craftwork Upholstery, has secured a £400,000 investment from the alternative finance provider Growth Lending to support the acquisition of the company via a management buy-in and to provide additional working capital.
Stephen Frazer and Graham Niven of Frazer Hall Corporate Finance advised Richard Carr, Craftwork’s new Managing Director, on his management buy-in of Craftwork Upholstery. The funding will also provide ongoing working capital to enable the business to expand over the next three years.
Established in 1991, Craftwork Upholstery manufactures furniture for various industries, including care and nursing homes and in the leisure sector for sports clubs and hotels. The company’s West Yorkshire headquarters, in the Armley area of Leeds, is home to its specially designed manufacturing facility, along with its product showroom.
Craftwork Upholstery chose to work with Growth Lending due to the strong relationship between the two organisations and the speed with which the lender was able to execute the deal, taking it from credit proposal to approval in just two working days.
Growth Lending provides funding for growth, working capital and M&A. Founded in 2013 to support UK SMEs where traditional banks can not, the firm works with innovative and fast growth B2B businesses, including those in technology, media and healthcare. Growth Lending had a record 2021, providing £64m under the government CBILS initiative, supporting businesses through the pandemic and aims to double in size by the end of 2022.
Richard Carr, the Managing Director at Craftwork Upholstery, says: “We are very happy to have received this funding from Growth Lending and are excited at the new opportunities it will bring.
“While the management buy-in is a big change for the business, we are confident of the positive impact it will have on the high quality service that our clients and customers have come to expect and on Craftwork’s growth aspirations during the next three years.”
Vicki Taylor, the Principal at Growth Lending, says: “It was a real pleasure to work alongside Richard and his advisory team to structure a revolving credit facility that enabled him to acquire the business.
“The funding has been structured to provide sufficient funds from day one to facilitate the purchase, as well as provide ongoing working capital to support the business through its next growth phase.”