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Innovative Facility for Acquisition of CTD Tiles Ltd

BZ has structured an asset-based lending facility to support the acquisition of Ceramic Tile Distributors (“CTD”) by the Pan-European asset management group AURELIUS from parent, Compagnie de Saint-Gobain. The comprehensive finance package is comprised of an ABL facility split across an accounts receivable line and inventory facility alongside a term loan. BZ led the structuring and financing of the facility, working with club partner, Leumi ABL. The introduction of Leumi ABL as a ‘First Out’ participant produced an optimal blend of flexibility and commerciality while delivering the required facility in one agreement.

Based in Newcastle upon Tyne, CTD is a specialist supplier of high-quality ceramic tiles across all key markets. Operating in 89 branches and four trading distribution hubs, the company predominantly sells tiles, tile adhesives, grout as well as associated tools and consumables for the preparation, laying, cutting and drilling of tiles. CTD’s leading B2B market position is supported by strong brand awareness of its Gemini product line and its robust trading performance. In 2021, CTD generated revenues of approximately £107 million.

This transaction will enable CTD’s highly experienced management team to leverage its market position by continuing to expand its e-commerce offering and operational development while targeting both organic growth and add-on acquisitions.

Commenting on the deal, Ben Milner, Regional Business Development Director at BZ, said: “We are delighted to support AURELIUS in the acquisition of this prominent business based in the North East and with a national footprint. The business and management team have performed well throughout the pandemic and we look forward to supporting their continued success under new ownership.”

Robert Wakeford, Managing Director, UK Sales at BZ, commented: “It’s great to work with AURELIUS again and to support them in their latest acquisition. AURELIUS has an impressive track record in delivering operational improvement and support and we are excited to see them develop the CTD business. We are also pleased to work with Leumi again on a bespoke FIFO facility that provides an optimal funding structure to finance the acquisition and support future growth.”

Richard Schulze-Muth, AURELIUS CFO, commented: “The partnership with BZ and Leumi is exactly the right step to connect strengths for a shared goal. We have structured a tailor-made financing to support the company’s transition after the carve-out. AURELIUS worked with BZ on a financing solution that combines the flexibility of an ABL facility with additional volume from the term loan facility.”

Tristan Nagler, AURELIUS Partner, commented: “This transaction is yet another proof of our expertise in the mid-market. From here on, our functional experts will leverage the potentials of this new addition to the AURELIUS family, seeking to grow the business to its best.”

BZ was advised on the transaction by Addleshaw Goddard (legal). European Valuations provided collateral due diligence. AURELIUS was advised by Norton Rose Fulbright (legal-finance) and Eversheds Sutherland (legal-acquisition).

BZ offers structured, multi-jurisdictional ABL facilities from £10 million to £150 million that deliver working capital and corporate structuring solutions.