A Calne-based castor and wheel manufacturer has acquired a distributor in a deal that will create the largest group of its type in the UK.
BIL Group has acquired Varley Castors of Altrincham in a deal backed by a £4.5 million finance package, which also includes funding for further growth and acquisitions, from Arbuthnot Commercial Asset Based Lending.
The business manufactures castors and wheels for a wide variety of industries, and materials handling equipment used by delivery drivers and in warehousing operations. Employing over 40 staff, the Group was acquired by PHD Industrial Holdings in 2022.
Since then, it has attained a number of key quality standards and consolidated its three Wiltshire warehouses into two, one of which is a newly-refurbished unit. BIL increased turnover by 16% to a record high of £8.9 million in the last financial year to September 2023 and profits rose by 13%.
Varley, a third-generation family business founded in 1938, employs 16 staff in Altrincham and its branch in Shropshire and supplies original equipment manufacturers and resellers nationwide.
Timothy Murrow, Managing Director of BIL, said, “This first acquisition is a pivotal moment for BIL and is part of our long-term growth strategy, which is fully supported by PHD. Currently both businesses supply different products and serve different customers. The deal will broaden our product range and give Varley access to our extensive range of materials handling equipment, which will open up new sales channels for both sides.”
Andrew Spring of Varley Castors added, “Joining forces with BIL brings together two like-minded companies with shared values and a combined trading history of over 130 years. The alliance will provide long-term benefits for our clients. We look forward to working with BIL to enable both businesses to take advantage of the opportunities ahead.”
