Arbuthnot Commercial ABL supports Merino’s buy-and-build strategy with bolt-on acquisition of Knightsbridge Mechanical Handling

This is a bolt-on to Stacatruc Limited, the forklift sales, service and rental business, which Merino acquired in June 2021 with Arbuthnot Commercial ABL’s support. The financial terms of the transaction are undisclosed.

In addition to supporting the acquisition, the funding package will generate additional headroom to provide further working capital. The successful transaction will allow the forklift group’s planned geographic expansion into the North West of England and will grow the group's fleet of casual and short-term hire trucks.

Merino and the combined group's management team plan to generate positive sale synergies and purchasing savings across the combined entity. In addition, management intends to facilitate the transfer of knowledge between the two teams, with Stacatruc's expertise in servicing and sales complementing Knightsbridge's competence in rental and hire.

Commenting on the transaction, Ben Reavley, Merino said:

"We are pleased to be able to expand Stacatruc with the acquisition of Knightsbridge Mechanical Handling. Both businesses already work closely, making for an exciting integration. Arbuthnot was easy to work with and supportive throughout the transaction. Arbuthnot has continued to support the growth potential of the group, and we are delighted to be partnering with them again. Overall, we believe this is an excellent step forward for the group."

Andrew Rutherford, Commercial Director at Arbuthnot Commercial Asset Based Lending, said:

“It is exciting and energising for our team to work with ambitious clients to enable them to achieve their objectives. We are thrilled to work with the group to fuel their growth journey and fund further acquisitions as they look to maximise opportunities in the forklift sector.”