Invoice Finance News – Private equity investor Shilling Group has acquired logistics firm Simmonds Transport based in Birmingham after securing a £2.75 million finance facility from Paragon Bank.
The invoice facility enabled Shilling to raise finance against the debtor book of Simmonds Transport, which it used to support the acquisition and provide post-completion working capital.
The trading arm of Birmingham-based Shilling Group has acquired Simmonds as part of its plans to invest £3 million in fleet efficiency and emissions reduction. The group specialises in delivering acquisitions for clients and joint venture partners, while its trading arm operates a variety of businesses.
Simmonds Transport was founded more than 45 years ago and is a Telford- Birmingham based logistics and warehouse firm operating a large commercial vehicle fleet and whom occupies and manages more than 250,000 sq ft of warehousing.
The deal was led on behalf of Paragon by Senior Sales Manager for Invoice Finance, Steve Holmes and is the latest in a series of successful deals that Paragon and Shilling Group have completed over the past decade.
Founded in 2014, Shilling Group is a private equity firm based in Birmingham whom in addition to the Simmonds Transport acquisition has equity stakes in PiperAI, precision engineering services firm Hillside Bison, industrial refrigeration component business Applied Product Solutions and now the defunct non-fungible token-powered community platform Komon.
Steve Holmes commented: “I am delighted to complete another transaction with Shilling Group. As a specialist invoice finance lender, we understand what is required to support a business acquisition and, through a close relationship with Shilling, we helped finalise the purchase of Simmonds Transport in the timelines required.”
Regarding the deal, Holmes added: “The debtor book is a great way to help in a sale and purchase of a business, and one that is sometimes overlooked.”
Shilling Group’s Group Operations Manager Bart Walkerdine said: “It is always good to work with Steve and the Paragon Team as they genuinely understand the acquisition process, as well as the post-completion cashflow needs of an acquired business.”
“Having an institution such as Paragon backing our Simmonds Transport venture has given us the ability and confidence to begin executing a £3 million program to increase the efficiency and reduce the emissions of the Simmonds fleet as part of our overall growth strategy for the business.”
Paragon begin life as National Home Loans Corporation, a specialist residential mortgage lender in the sub-prime market. The business changed its name to Paragon Group of Companies in 1997. In 2003 Paragon Group acquired Britannic Money and rebrand it to Mortgage Trust, continuing its growth as a specialist residential mortgage lender.
In 2014 Paragon Bank was launched, offering a range of internet-based savings accounts and lending products and diversifying the business away from its sub-prime mortgage lender status.
In 2017 Paragon Bank became Paragon Banking Group PLC and saw the group launch on the FTSE 250. In 2018, Paragon Banking Group completed a £48m takeover of residential lender Titlestone Property Finance.
As of 2024 the wider Paragon Bank business has some £1bn plus in mortgage advances and £1bn plus in commercial lending making it one of the UK’s largest midsize providers of mortgages, savings accounts, and business finance.
