Arbuthnot Commercial ABL backs Simplex-Turbulo acquisition

Arbuthnot Commercial Asset Based Lending (ACABL) has supported Simplex-Turbulo Limited, part of SLX Group, in its strategic acquisition of Clements Engineering Ltd, a specialist in propellers, marine shafts and related equipment.

To facilitate the transaction, ACABL structured a £1.3 million funding package comprising an £800,000 cash flow loan alongside a £500,000 Confidential Invoice Discounting facility. The funding was designed to support the acquisition while maintaining operational flexibility, particularly as SLX Group transitions stock holdings from the UK to Germany. The cash flow loan was structured against the wider group’s position rather than solely the acquired business, enabling greater flexibility and access to funding.

Founded more than 40 years ago in Bedfordshire, Clements Engineering operates its own foundry, workshops and CNC machinery, and is recognised as a leading UK manufacturer of propellers, marine shafts, stern tube assemblies and ancillary marine equipment. The acquisition is seen as a strong strategic fit, with Clements’ focus on smaller vessels opening up a complementary market segment for Simplex-Turbulo.

Commenting on the deal, Marcus Poole, Finance Director at SLX Group, said: “Arbuthnot Commercial ABL has been fantastic to work with. They took a holistic view of our objectives and understood what we were looking to achieve. They’re very responsive, and we have open conversations. Their ability to move quickly and make decisions without lengthy processes is worth its weight in gold.

“With this facility in place, our sales team can open up global markets for Clements. The combination of their product range and manufacturing capability allows us to significantly expand our offering. We plan to significantly expand Clements’ footprint over the next two to three years and are already developing plans to support that growth early next year.”

“We are pleased to support Simplex-Turbulo through this strategically aligned acquisition. The flexible financing structure, combining invoice discounting with cash flow lending, creates a solid foundation for the Group’s growth ambitions.

“We believe in relationship-driven partnerships, and we’re committed to supporting new value-creation opportunities as they emerge,” he said.