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BTG Corporate Finance Advises Hargreaves Services plc on £115m Funding Deal

BTG Corporate Finance Advises Hargreaves Services plc on £115m Funding Deal

Rapidly expanding Durham-based Hargreaves Services plc has secured funding in one of the region’s largest corporate deals of the past 12 months.

Hargreaves Group is a leading supplier of products and services to the energy, mineral and waste sectors. During the past few years, the £503m turnover business has grown both by acquisition and organically, and has now secured a new debt package to allow for further growth over the coming year.

Sourced from a ‘club’ of five banks, led by existing bankers Royal Bank of Scotland, the deal that was structured and negotiated by the BTG Corporate Finance team in Newcastle will deliver a £115m debt refinancing facility.

Lloyds TSB Corporate Markets, Santander, HSBC and Yorkshire Bank have all joined RBS in providing the facilities, demonstrating the renewed corporate lending that is starting to be seen to following a period of virtual standstill after the collapse of the banking markets in September 2008.

Commenting on the refinancing facility, Iain Cockburn, Hargreaves’ Finance Director, said: “We are pleased to have new finance arrangements in place. Given the current economic climate, we believe the securing of this facility is testament to the strength of the business and its prospects for further progress.”

Established in 1994 as a specialist bulk haulier, the Hargreaves Group has grown, both organically and by acquisition, into a major force in the supply, movement and management of mineral resources and the provision of support services to the energy and waste industries.

“Despite the unprecedented economic conditions this deal is evidence that good quality businesses with strong management teams are still able to secure funding,” said Shawn Bone, partner at BTG McInnes Corporate Finance.

“Hargreaves is a quality North East business and there was a great deal of interest from the banking sector to support its expansion. It is now well positioned to continue its successful track record of growth,” he added.

The Group employs 2,300 staff and operates through four divisions, production, energy & commodities, transport and industrial services. The Hargreaves Group operates over 400 vehicles as well as other sub-contracted haulage stock around the UK and owns numerous collieries, factories, transport depots and manufacturing plants across the country.

Other advisers involved in the deal included KPMG who provided transaction support services, Walker Morris who advised the company on legal matters and Eversheds who advised the banking group.

Julie Palmer

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Julie Palmer

Regional Managing Partner

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Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.

Julie is a member of the Insolvency Practitioners Association and the None Administrative Receivers Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

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