Direct Valeting Limited, one of the UK’s leading professional valeting services providers, is posed for another year of significant growth, following completion of a fundraising advised on by Sheffield based Corporate Finance specialist, Castle Square Corporate Finance.
With head office based in Newcastle Under Lyme, Direct Valeting provide professional valeting services to motor dealerships located throughout the UK. Direct Valeting boost a client base of over 550 dealerships, including AM100 top dealerships such as Lookers, Pendragon – Evans Halshaw, Perry’s Group, Renault Group, Robins & Day and Sytner.
Since formation in 1998, Direct Valeting has grown to become one of the largest professional valeting providers to motor dealerships throughout in the UK, offering services of new and used vehicle preparation, display and showroom cleaning and vehicle imagery.
In 2015 Direct Valeting was acquired by large Pan European services provider Arwe Mobility Holdings GmbH. The UK operations are led by UK Managing Director, Jason Carpenter, and under his stewardship annual revenues and profits have increase significantly year on year.
The Company acquired Leicester based Quality Assured Valeting in April 2019 which contributed to successive years of record revenue and profitability growth. Annual revenue exceeded £35 million in the year ended 31 December 2019 and the year ending 31 December 2020 is posed to be another record year for revenue and profitability. Jason Carpenter said
: “The fundraising was very simple for us as a Company with very little time taken which allowed us as a management team to focus on our customer base and ensure we weren’t distracted during the process. It was carried out very quickly and will allow the Company to enhance its place in the marketplace with Franchised Retail Dealerships and Groups and look at acquisitions giving greater geographical coverage with focus on our customer satisfaction and care.
The team at Castle Square were fantastic with their approach and professionalism and with this now in situ we can continue to grow and deliver fantastic results.”
Sheffield based dealmakers; Castle Square Corporate Finance provided corporate finance advice to the Company, advising on the funding structure and negotiations with funding provider Caple.
Castle Square is a mid-market specialist corporate finance boutique with a proven track record of acting for a wide range of clients on corporate acquisitions & disposals, management buy in & buy outs and corporate fundraisings.
Director, Patrick Lynch and Lisa Ritson from the Castle Square Team advised the Company on the transaction. Patrick Lynch added,
“The funding package offered by Caple is unique to the UK market and was a perfect funding solution to Direct Valeting. The funds raised provides this large, long-established and fast-growing business with the requisite funds to assist the Company through its next stage of significant growth”.
The growth capital funding was provided by the BNP Paribas-backed, European funder, Caple, who specialise in providing funding growth capital for European businesses, as an alternative to the traditional debt and equity markets. Sean Brophy, Caple UK Country Manager said,
“Direct Valeting Ltd is well-established and profitable with a clear growth opportunity. However, it is also a prime example of a UK SME who have operational banking facilities from a high-street provider, but who have limited options beyond that. As an unsecured lender we work very effectively alongside secured facilities, with the 8-year tenor allowing the management team to concentrate on growth rather than just debt repayments.”