Arbuthnot Commercial ABL supports acquisition of Power Capacitors Limited

Arbuthnot Commercial Asset Based Lending (ACABL) has supported the acquisition of Power Capacitors Limited, a leading specialist in power quality and associated equipment.

ACABL provided a £1.4m asset-based lending package to support the acquisition and provide headroom for growth for the new era of the company.

Formed in 1973, Power Capacitors (PC) is firmly established as a leader in Power Factor Correction and Power Quality Solutions. Recognised as one of the UK’s foremost experts in its field, PC’s customers range from large multi-national companies to SMEs and private individuals.

Fully committed to ISO 9001:2015, the globally recognised standard for quality management, PC additionally sells and distributes motor and power electronics capacitors, and provides servicing, maintenance, and installation for any type of Power Factor Correction equipment, regardless of manufacturer.

The business had remained in family ownership throughout its entire history. With the second generation wishing to retire, the business sought an external buyer and found a perfect match in Harry Townshend, a highly experienced engineer and company investor in the sector.

Harry Townshend, Director of Power Capacitors Limited, said: “Asset Based Lending provided the ideal funding platform for the deal. I reached out to my network to start examining providers that might fit the bill and was recommended to contact Arbuthnot. The team was very helpful from the outset, even to the extent of very honestly suggesting that I contact a broker and undertake a full evaluation of the market. I saw five providers, but Arbuthnot came out on top.”

He added: “Not only did Arbuthnot provide the most commercial terms across the board, but they also took the time to visit the business and meet with me and the seller. They prepared for that meeting extremely thoroughly and have shown themselves to be utterly trustworthy, easy to work with, and knowledgeable ever since.”

Andrew Rutherford, Commercial Director at Arbuthnot Commercial Asset Based Lending Limited, said: “We work in an age where it is not always seen as important to build solid and trusting face-to-face business relationships. That’s good for us because it’s how we do things and it’s a foundation of our success. We are delighted to be supporting Harry and Power Capacitors as the business enters this exciting new era.”