A major automotive aftermarket distributor has secured a £2m ABL facility from Praetura Commercial Finance Group to support the transfer to Employee Ownership.
Established since 1972, Pearl Automotive (Pearl), supplies the automotive aftermarket with over 7,000 lines from their warehouse in Benfleet. Pearl led the development of well-known brands such as Wot-Nots, High Tech Parts and Pearl Consumables, which are distributed throughout the UK and Europe.
Pearl’s shareholders were looking for a solution to help manage a staged exit from the business. Transferring ownership to an EOT provides the perfect solution for both continued success and workforce stability. Praetura Commercial Finance Group structured a £2m ABL facility consisting of CID and cash flow loan.
Robin Etherington, finance director of Pearl Automotive commented: “We approached Praetura through a long-time contact (Jeff Greenfield, Sales Director) after a lack of progress with the banks. I was impressed with Praetura’s knowledge and acceptance of the EOT corporate model and the speed of funding in just under 2 weeks, which will ensure long term stability for the company, our loyal customers, and provide our dedicated workforce, with a direct voice in the running of the company moving forward, allowing a clear and managed succession plan to take effect.”
Stuart Bates, commercial director, Praetura Commercial Finance commented: “We were only too pleased to support Pearl Automotive’s transition into an Employee Owned Trust. In order to meet their timescales, it was a superb effort from the Praetura Commercial Finance team to complete the transaction in just 12 days. Pearl has a clear vision for the future and with their dedicated and passionate workforce, we look forward to seeing their growth accelerate.”
