Arbuthnot Commercial Asset Based Lending (ACABL) has supported the majority Management Buyout (MBO) of Salopian Brewing Company Ltd (Salopian Brewery) by providing a seven-figure funding package.
The structured facilities from ACABL include a receivables finance facility, a property term loan and a cashflow loan.
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Salopian Brewery, originally founded as Snowdonia Brewery in 1994 by Martin Barry at his pub in North Wales, relocated to Shrewsbury in 1995 and was renamed Salopian (the historic name for Shrewsbury). In 2004, Martin Barry left the brewery, and Mark Hill became a partner.
Having developed a multi-award-winning brand, the deal sees investor Mark Hill increase his commitment to the future of the brewery alongside Managing Director Trevor Hourican, with continued support and ownership from Wilf Nelson.
Situated in the village of Hadnall on the outskirts of Shrewsbury, the purpose-built brewery is complemented by its much-loved taproom and shop. In 2021, Salopian Brewery saw the commissioning of its first canning line to work alongside the bottling line. While the business continues to uphold its tradition of crafting an eclectic range of cask ales, this is now complemented by a range of kegs, cans, and bottles.
Trevor Hourican, Managing Director of Salopian Brewing Company Ltd, said: “Arbuthnot Commercial ABL has provided a springboard for the next exciting chapter in Salopian’s growth story, enabling a seamless transition of ownership by releasing cash for our founding shareholders.
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By GlobalData“This is a really significant deal as it not only recognises the team that has developed the company into the success it is today, but also ensures the next phase of growth is secured, allowing the business to continue developing well in the future. We will continue to diversify our offerings through further investments in canning lines and direct-to-consumer channels.”
Advisory firm, Alinea Corporate Finance, played a key role in navigating the business through the complex process of securing Salopian’s next phase of growth.
Oliver Wadlow, Director at Alinea Corporate Finance, said: “What made Arbuthnot Commercial ABL incredibly helpful was the adaptability of their funding approach, particularly their willingness to lend significantly against property assets. They are straightforward to work with and maintain a clear focus on deliverability and responsiveness.
“Arbuthnot has a good understanding of the brewery sector, and with the funding in place, the opportunity for the business is massive. Having worked so closely with the shareholders to achieve this deal, I couldn’t be happier with the outcome for all involved. Salopian Brewery is a key part of the Shropshire food and beverage landscape, so I’m immensely proud to be a part of securing the next stage of its growth through this deal.”
Andrew Rutherford, Commercial Director at Arbuthnot Commercial ABL, said: “We are thrilled to have provided flexible funding support for the MBO at Salopian Brewery.
“The key to successful MBO transactions hinges on getting the structure of the buyout right to suit all parties and aligning the funding to ensure the ongoing prosperity of the business. By considering the entire asset mix and incorporating a cashflow loan, our aim was to liberate the maximum level of cash providing a robust platform for future growth.”
