Business lender Cattles Invoice Finance has been bought from its parent company by the AnaCap private equity fund in a £70 million deal.
The transaction is subject to final shareholder approval, and is expected to close in around five weeks, from when the funding for Manchester-based CIF will be provided by Lloyds TSB Commercial Finance.
CIF was formed in 1994 and has expanded significantly in the past 15 years. It mainly works with small and medium-sized businesses from its network of six regional centres across the UK, which includes one in Birmingham on Great Charles Street.
Its annual client turnover is in excess of £1 billion, with facility sizes ranging from £25,000 to £4 million. Following the acquisition, the company said it plans to keep up the same level of funding that has seen it grow over the years.
London-based AnaCap is a specialist private equity fund focused on making European investments in the financial services sector. Having recently closed its second fund, raising nearly £500 million from investors, including Goldman Sachs, Allianz, Honeywell, Morgan Stanley Alternative Investment Partners, State of New Jersey and Adams Street Partners, its total funds under management now exceed £750 million.
Some of its existing portfolio companies include Syscap, the UK’s leading independent IT finance provider, and Apex Credit Management, a contingency collector of prime debt for major financial institutions. Recently, AnaCap also completed the first ever acquisition by a private equity fund manager of a UK deposit-taking bank, which is now known as Aldermore.
Peter Cartwright and Andy Wynn, partner and head of credit respectively at AnaCap, will now join CIF’s board, led by chief executive, Doug Crawford.
Mr Crawford said: “This deal is welcome news for the clients and staff of Cattles Invoice Finance, and we are excited by the opportunity to build a stronger business with the support of an experienced parent.
“Over recent years, we have operated increasingly autonomously from Cattles plc, as it has focused on consumer lending, and AnaCap’s combination of analytical and operational expertise will provide our existing, experienced management team with the resources needed for continued expansion.
“The deal sees our funding line increase significantly, allowing us to retain our independence while strengthening our focus on the enormous potential for further growth and development of the SME market. The invoice finance industry is enjoying unprecedented growth in the current financial climate, and we intend to capitalise on the opportunity that this provides to fund more of the right kinds of deals and develop more tailored products and services in line with the changing needs of the market.
“In the short-term, we will continue to trade as Cattles Invoice Finance, after which we will undergo a significant rebranding process that will build on our current strengths and incorporate the innovations we plan to implement over the coming months. We look forward to unveiling our new corporate identity in due course and continuing our already impressive growth as the UK’s leading independent business funder.”
Chris Patrick, the mergers and acquisitions partner at AnaCap, added: “We are excited about the future prospects for CIF, and pleased to be providing continuity for the company’s staff and clients.”
