Arbuthnot Commercial Asset Based Lending (ACABL) has provided a flexible funding package to Birmingham-based power transmission specialist Cross + Morse, supporting the manufacturer’s expansion plans under the ownership of Astwood Group.
The financing provides additional working capital and funding flexibility to support organic growth and potential acquisitions. The agreement also establishes a longer-term banking relationship as Astwood Group looks to expand its manufacturing and engineering interests.
Cross + Morse has operated for approximately 100 years and manufactures and distributes mechanical power transmission products used across several industrial sectors. The business operates from a fully integrated 5,000-square-metre manufacturing facility in Birmingham, supplying customers in the UK and internationally.
Its products include gears, roller chains, timing belts and freewheel clutches, which are used in industrial machinery and equipment. The company serves customers across oil and gas, steel production, sewage treatment and other engineering industries.
Cross + Morse is also the UK’s largest distributor and stockist of American-manufactured transmission products, providing an established distribution operation alongside its manufacturing activities.
The business was acquired by Astwood Group in December 2024 through a management buy-in. The acquisition represented Astwood’s first platform investment and established Cross + Morse as the foundation for its expansion strategy.
Astwood Group specialises in acquiring established manufacturing and engineering businesses, particularly long-standing family-owned and privately held companies in the Midlands.
Under the leadership of Michael Capewell, the group intends to develop Cross + Morse through operational improvements, organic growth and further acquisitions. The new financing arrangement is intended to provide the working capital needed to support these plans while allowing the business to respond to future opportunities.
The funding package from Arbuthnot Commercial ABL has been structured around these requirements, providing Cross + Morse with additional financial capacity as Astwood Group develops the business.
Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.
