London 4 November 2011: GE Capital, one of Europe's leading providers of asset based lending, today announced that it has agreed a new £15m financing deal with commercial tyres distributor, Kings Road Tyres. The deal builds on GE Capital's strong focus on the automotive sector, following on from a €125million pan-European deal with IAC Group earlier in the year and other long-standing relationships with companies such as Triumph and Jaguar Land Rover.
Kings Road Tyres is a leading wholesaler and distributor of tyres for cars, commercial trucks, vans, agricultural and construction vehicles throughout the UK and Ireland. The business operates from a network of 12 branch depots, plus its headquarters in Hayes, Middlesex. Utilising its own fleet the business provides extensive distribution, next day delivery and a comprehensive stock range to its customers.
The new facility enabled the company to complete a management buyout giving the company's management a majority stake in the business.
Adrian Bader, Managing Director, Kings Road Tyres commented:
"A number of different financial providers were examined, however we felt that GE Capital offered the structure we were looking for and demonstrated they had the passion and enthusiasm to deliver what we needed."
GE Capital is one of the leading providers of commercial finance across Europe and provides finance to over 90,000 businesses in the UK, to support daily working capital requirements such as invoice financing and asset based lending. It lends approximately £10 billion in volume terms to UK SMEs and mid-market businesses annually, including £4bn in volume terms through Accounts Receivable Finance. In the UK, over 60% of GE Capital's lending volume is to manufacturing companies.
Alan Austin, Regional Director at GE Capital, commented:
"Asset-based lending provides many businesses with a cost-effective way to improve cash flow and contributes to a secure financial footing. We are increasingly seeing businesses and their investors in the automotive industry turn to asset based lending in support of management buyouts and other business transactions, as its ability to unlock and enable growth becomes more well-known. We are pleased to be able to support Kings Road Tyres and look forward to strong, long-term relationships. "
Zoe Chambers
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business unit
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