UK-based AFI Group has secured a UK£70 million refinancing deal to accelerate its growth plans in both the UK and the Middle East
The deal with asset based lender PNC Business Credit will provide the aerial work platform specialist access to a £55 million asset backed lending facility, alongside a £15 million term loan.
Having completed three UK acquisitions this year, the group said it will now focus on further acquisitions as it seeks to take advantage of consolidation opportunities in the fragmented UK hire market. The company will also continue to look at opportunities to extend its depot footprint in the UK and the Middle East.
The five-year financing deal follows an investment by Rutland Partners in May 2013, which amalgamated AFI and Hi-Reach in the UK with Access Rental Gulf in the Middle East, for a combined enterprise value of £85 million.
Last year, the group saw strong growth with record revenues of £55 million and EBITDA of £19 million, it said, and is expecting to make further progress this year, despite a challenging market backdrop in the UK.
David Shipman, chairman of AFI, commented, “This is a good deal for AFI and will enable us to continue taking advantage of both acquisition and organic growth opportunities as we head into an important period of growth for the Group.
“Our Middle East operations continue to grow, and with further depot openings planned for early 2016, we remain confident in the medium-term prospects for the region.”