Ignite acquires APH with Arbuthnot Commercial ABL support

Arbuthnot Commercial Asset Based Lending has provided a multi-million-pound funding package to support Ignite Growth’s acquisition of APH Hydraulic Engineering Ltd, marking the third transaction completed by the specialist lender for the investment firm.

The funding package comprises a confidential invoice discounting facility alongside a cashflow loan, enabling Ignite Growth to acquire the specialist engineering business as part of its long-term strategy of investing in leading UK industrial companies.

Founded in 1964 and headquartered near Glasgow, APH Hydraulic Engineering has been family owned for more than 60 years. The company designs and manufactures hydraulic cylinders and actuators for mission-critical applications across the defence, subsea and wider industrial sectors.

Its products are used in a range of demanding environments, serving customers across civil engineering, rail, nuclear and defence industries. Applications include deep-sea cable laying, mine clearance, ship stabilisers, wind turbines, tidal energy projects, fire trucks and bridge lifting systems.

The acquisition follows the retirement plans of APH’s owners, with the existing management team remaining in place. Arbuthnot said the new funding facility will provide the business with additional financial headroom to strengthen its market position under Ignite Growth’s long-term ownership.

Andrew Leek, Partner at Ignite Growth, said: “Arbuthnot yet again demonstrated how easy they are to deal with by delivering a well-designed facility in a flexible, swift, and smooth manner, which for us is their hallmark.

“We believe businesses like APH play a vital role in supporting sovereign capability and strengthening the UK’s industrial base, and we’re excited to be supporting the team in delivering on that potential.”

“We are delighted to have delivered a third facility for Ignite and to be continuing to support them in the development of their impressive portfolio of leading UK businesses. Like Ignite, we value long-term business relationships and work hard to leave no stone unturned in delivering the right solution every time.”