Sanderson Weatherall has advised Wiltshire-based BIL Group on the acquisition of a castors distributor, which will create the largest group of its type in the UK.

The deal, which was backed by a £4.5m finance package from Arbuthnot Commercial Asset Based Lending, saw BIL Group acquire H Varley Limited of Altrincham.

Part of the PHD Industrial Holdings group (“PHDIH”), BIL Group manufactures castors and wheels for a wide variety of industries and materials handling equipment used by delivery drivers and in warehousing operations. The Company, which employs more than 40 staff and boasts its own branded range of products was acquired by PHDIH in 2022.

Christian Humphreys, head of Asset Based Lending at Sanderson Weatherall commented: “After working with PHDIH on the original BIL Group Limited (“BIL”) transaction in 2022, it was a pleasure to advise both BIL and PHDIH on its acquisition of H Varley Limited.

“Strategy, timing and delivery of reporting on both the acquisition and existing business was key to pulling together the important due diligence to provide satisfactory comfort on the inventory and the accounts receivable specific to both entities with great synergy in order to deliver detailed and concise reporting to support the acquisition; and provide asset based lending profiles for Arbuthnot Commercial Finance Asset Based Lending”.

Andy Dodd, Director at PHD Industrial Holdings commented: “Having previously worked with Christian and the Sanderson Weatherall team on numerous occasions, notably during our acquisition of BIL Group, they were the natural selection to assist us in acquiring H Varley. The reliability of their reporting, their punctuality in meeting deadlines, and their reputation within the asset-based lending community, are the qualities that make working with Sanderson Weatherall so straightforward. We look forward to collaborating with them again on our pipeline of future acquisitions across the PHD Industrial Holdings group going forward.”

Joe Taviner, Director at Arbothnot Commercial ABL, added, “We want to extend our congratulations to all those involved in this highly synergistic transaction. We are thrilled to have assisted BIL Group’s inaugural acquisition, supported by Sanderson Weatherall, whose asset class valuation work helped facilitate our funding without delay.  This transaction unlocks significant cross-selling potential while broadening BIL Group’s reach, signifying a significant milestone for the business. We take pride in structuring transactions not just funding the initial acquisition but also providing the maximum headroom to enable future organic and inorganic growth.”