Arbuthnot Commercial ABL backs Cross + Morse growth plans

Arbuthnot Commercial Asset Based Lending (ACABL) has provided a tailored growth capital package to power transmission specialist Cross + Morse, supporting its organic and acquisition-led growth plans under the ownership of Astwood Group.

The funding package provides Cross + Morse with additional working capital flexibility and headroom as the Birmingham-based manufacturer looks to develop the business and pursue potential complementary acquisitions.

Cross + Morse has a 100-year trading history and operates from a 5,000m² integrated manufacturing facility in the West Midlands. The company provides specialist engineering, manufacturing and distribution services to customers in the UK and internationally.

Its product portfolio includes gears, roller chains, timing belts and freewheel clutches, serving sectors including oil and gas, steel and sewage treatment. Cross + Morse is also the UK’s largest distributor and stockist of American-manufactured transmission products.

Midlands-based SME investment firm Astwood Group acquired Cross + Morse through a management buy-in in December 2024, marking its first platform investment.

Led by Michael Capewell, Astwood Group specialises in acquiring and developing long-established family and privately owned businesses in the region that are seeking a long-term home. The group is currently looking for established manufacturing and engineering businesses that could complement Cross + Morse.

Michael Capewell, Director at Astwood Group, said: “Cross + Morse is a long-established manufacturer with a strong team, significant machine base and a great foundation to build on. There is an opportunity to modernise and develop the business further, while growing both organically and through acquisitions.

“While power transmission is our current focus, we remain open to opportunities in other sectors where we see the right fit.”

Commenting on the funding package, Capewell added: “I’d banked with Arbuthnot before and was impressed by how they operated. The team understood what we were trying to achieve, were clear about what they could deliver, and then went on to deliver exactly that.

“The funding structure was highly competitive and offered a degree of flexibility, which is increasingly rare in today’s market. We believe we’ve found the right long-term banking partner in Arbuthnot Commercial ABL, with the appetite to support both our organic growth and acquisition strategies.”

“Astwood Group has clear ambitions for Cross + Morse, and this blended facility structure provides the working capital foundation to help deliver those plans, while also creating a platform to support future complementary bolt-on acquisitions.

“We look forward to supporting Michael and the team as they continue to develop Cross + Morse and realise their vision for the business.”

Astwood Group was advised on the transaction by RJS Solicitors, Prime Accountants and Leonard Curtis.