Member Article

Croydon office product group secures £60m funding from Lloyds Bank

Office products group SpicersOfficeTeam is accelerating plans to broaden its product portfolio and expand into new sectors after securing a £60m asset based lending facility from Lloyds Bank.

The Croydon-headquartered was formed in August 2014 when Spicers, a wholesaler of office equipment and furniture, joined with office service provider OfficeTeam. SpicersOfficeTeam, which employs 1,500 people and has an annual turnover of £350m, is targeting significant growth across the next three years.

Spicers, which offers its customers a range of over 14,000 products, operates six regional distribution centres.

To facilitate the expansion of the group’s product lines and services, it approached the Lloyds Bank’s Commercial Finance team for support. The asset based lending facility includes funding against receivables, property and inventory, providing the working capital uplift to drive the Group’s long-term objectives.

Lloyds Bank was advised by Irwin Mitchell, GA European Valuations and Jones Lang Laselle. SpicersOfficeTeam was advised by Jones Day.

Andrew Mobbs, Chief Financial Officer at SpicersOfficeTeam, said: “Our ambitions are to continue providing a quality service to our customers, but to enhance the range of products that we can offer so that we become the one stop shop for all their business consumable needs, whether that’s stationery, facilities management, print or furniture requirements.

“Thanks to the support of Lloyds Bank we are now well placed to accelerate our plans and deliver further growth for the business. We are looking forward to offering a wider choice of services to new and existing customers over the coming months.”

Sam Owen, Regional Director at Lloyds Bank Commercial Finance, said: “SpicersOfficeTeam has a strong management team in place with a clear vision for the long-term success of the Group. We have worked with the business for a number of years, and the flexibility of the funding facility we have provided delivers a solid platform for the business to grow.

“We are committed to supporting ambitious mid-market businesses like SpicersOfficeTeam, and look forward to working with the company as it expands the services it offers to its growing customer base.”

This was posted in Bdaily's Members' News section by Ellen Forster .