Arbuthnot Commercial ABL supports MBO of flooring specialist

Arbuthnot Commercial Asset Based Lending (ACABL) has announced the completion of a £2.9 million funding package to support the management buyout (MBO) of Kirkton Flooring Limited, a commercial flooring contractor based in Scotland.

The bespoke facility includes a £1.5 million Confidential Invoice Discounting line, an £800,000 Growth Guarantee Scheme loan, and a £600,000 cash flow loan. The funding has enabled existing shareholders Ryan and Steven McMeechan to acquire the remaining shares from two retiring founders, while also providing substantial financial headroom to support future growth.

Founded in 1998 and incorporated in 2002, Kirkton Flooring specialises in the supply and installation of commercial flooring across the private and public sectors. Its diverse client base spans healthcare, education, and commercial projects, with key framework partnerships including NHS Fife, NHS Lothian, and major contractors such as Amey and Galliford Try.

Ryan McMeechan, Managing Director of Kirkton Flooring, reflected on the milestone:

“I started at Kirkton as a 15-year-old apprentice and it was always a dream to get ourselves into this position. When we first met the team at Arbuthnot, we just clicked with them straightaway. The relationship was great from the outset, whether it was our account manager or at a more senior level. They walked us through every process at every step, and nothing seemed to be too much trouble.”

He added: “We’ve never acquired any businesses and have always been cash generative and self-financed. But Arbuthnot made the process easy. The facility not only secures the financial future of the business but also gives us the opportunity to grow whenever and wherever we need to. Personally, it’s taken us to another level in our development too. It’s exciting to be in the position that we had always worked towards.”

“We’re delighted to support Ryan and Steven in realising their ambition to own the business they’ve dedicated their careers to building. The multi-faceted nature of this funding package provides the headroom they needed not just to complete the buyout, but to drive the business forward. Getting this deal delivered meant understanding what success looks like for the team and structuring a solution that makes it achievable. We look forward to supporting them as they write the next exciting chapter for Kirkton.”