Shawbrook delivers £44m ABL package for battery recycler carve-out

Shawbrook has provided a £44 million Asset Based Lending (ABL) facility to support the carve-out acquisition of Ecobat Resources UK Ltd (ERUK) by newly formed private equity firm Splitstone Capital LLP, in a deal that aims to accelerate growth at the UK’s largest lead battery recycler. Following completion, ERUK will return to its former name, HJ Enthoven (HJE).

Founded in 1938, HJE operates three UK sites and processes up to 150,000 tonnes of scrap lead batteries each year. The business supplies high-purity recycled lead to customers in the automotive, industrial and construction sectors. Its closed-loop recycling system, which recovers more than 99.97% of lead content, has long positioned the company as an environmental leader in its field.

London-based Splitstone Capital, established in 2024 to specialise in non-core industrial and business services carve-outs across the UK and Ireland, will use Shawbrook’s tailored ABL structure to optimise HJE’s working capital and support operational investment following the separation from Ecobat LLC. Shawbrook said the facility reflects its focus on backing market-leading businesses with strong ESG credentials and robust operational performance.

Peter Foxwood, managing partner at Splitstone Capital, described HJE as “a strongly-performing market leader with a vital and enduring role in the circular economy.”

He added: “This transaction exemplifies the kind of complex carve-outs we actively seek out, where focus, pace and creativity are essential to deliver a successful outcome.”

HJE managing director John Manning said the agreement “marks an important milestone for our people and customers,” praising Splitstone’s “pragmatic and supportive approach” during the process.

“With their backing, we’ll be well placed to invest in our operations, enhance service and continue our leadership in safe, sustainable lead recycling,” he said.

Foxwood also highlighted Shawbrook’s contribution to the transaction, noting that its “tailored approach and industry insight enabled us to unlock value and invest confidently in HJE,” adding that the flexible ABL solution “aligns with our growth ambitions and sustainability objectives.”

Oliver Sutton, director of Asset Based Lending at Shawbrook, said HJE “represents the highest standards in British manufacturing, sustainability and innovation,” and described the business as “an ideal partner” for the lender.

Fellow director Oliver Jenkins added that the structuring capability behind the ABL facility “provides the flexibility and strategic support needed for more complex, multi-faceted transactions, such as Splitstone’s recent carve-out acquisition.”

Squire Patton Boggs advised Shawbrook, while Splitstone received debt advisory support from FRP and legal counsel from Gunner Cooke.