Metro Bank backs Hepworth Clay deal with £20m ABL package

Metro Bank has announced the completion of a £19.725 million Asset Based Lending (ABL) facility to support the acquisition of Hepworth Clay by private equity firm 4D Capital Partners LLP. The funding package comprises Invoice Finance, Stock Finance, and a Plant & Machinery Term Loan, alongside ongoing working capital provisions.

Hepworth Clay, based in the Midlands, is the UK’s only manufacturer of vitrified clay pipes and fittings used in critical drainage infrastructure. The business also produces a range of terracotta products for the construction sector, including flue and chimney systems, using materials sourced from its own local quarries.

Alan Austin, Head of Asset Based Lending at Metro Bank, commented: “We are delighted to provide this bespoke Asset Based Lending package to Hepworth Clay, and its new owners 4D Capital Partners.

“We worked closely with all parties to enable this transaction and our ongoing support will see this essential manufacturing business continue to support its local Midlands economy. I look forward to working with Hepworth Clay on future financing opportunities as it continues to scale and grow.”

The acquisition marks a significant milestone for Hepworth Clay, bringing the business back under local ownership through 4D Capital Partners. The new funding will be instrumental in driving growth, investment, and operational development.

Alex Silk, Founder of 4D Capital Partners LLP, said: “We are delighted to be partnering with Metro Bank, who have provided a significant funding package that will help us to turbocharge the growth of Hepworth. From the outset, Metro Bank understood the business and were very commercial in their approach to the transaction.”

The transaction was supported by a wide network of advisers. 4D Capital was advised by Quantuma, K3 Tax, Shoosmiths, Dickson Minto, K3 Advantage, and Ford Campbell Freedman. Metro Bank was advised by Mills & Reeve, European Valuations, and Silkstone Environmental.

Scott Peters, Managing Director of Corporate Finance at Quantuma, added: “It was fantastic to see so many Midlands-based advisors working on this transaction. Hepworth is an important Midlands asset and it’s very rewarding to bring it back into the local ownership of 4D Capital. The Metro Bank team were excellent and put in place a very flexible structure for a complex deal. It’s great to see innovative funders coming into the market and making a difference.”