Arbuthnot Commercial Asset Based Lending has structured a blended funding facility for Cross + Morse, a Birmingham-based power transmission manufacturer with a century of trading, to support organic growth and bolt-on acquisitions under new ownership.
Cross + Morse, one of the UK’s longest-established businesses in its sector, operates from a 5,000m² fully integrated factory in the West Midlands. Its product range covers gears, roller chains, timing belts, and freewheel clutches, with customers across oil and gas, steel, and sewage treatment. The company is also the UK’s largest distributor and stockist of American-manufactured transmission products, supplying clients worldwide.
Astwood Group, a Midlands-based SME investment firm that acquires and grows long-established family and privately owned businesses, bought Cross + Morse in December 2024 through a management buy-in.
The deal was the group’s first platform investment. Led by Michael Capewell, Astwood is now looking to add further manufacturing and engineering businesses to build out the Cross + Morse platform.
“Cross + Morse is a long-established manufacturer with a strong team, significant machine base and a great foundation to build on,” said Capewell, director of Astwood Group.
“There is an opportunity to modernise and develop the business further, while growing both organically and through acquisitions. While power transmission is our current focus, we remain open to opportunities in other sectors where we see the right fit.”
Capewell had an existing relationship with Arbuthnot before approaching the lender for the facility. “I’d banked with Arbuthnot before and was impressed by how they operated,” he said.
“The team understood what we were trying to achieve, were clear about what they could deliver, and then went on to deliver exactly that. The funding structure was highly competitive and offered a degree of flexibility, which is increasingly rare in today’s market. We believe we’ve found the right long-term banking partner in Arbuthnot Commercial ABL, with the appetite to support both our organic growth and acquisition strategies.”
Richard Ackers, director of business development (North East) at Arbuthnot Commercial Asset Based Lending, said: “Astwood Group has clear ambitions for Cross + Morse, and this blended facility structure provides the working capital foundation to help deliver those plans, while also creating a platform to support future complementary bolt-on acquisitions. We look forward to supporting Michael and the team as they continue to develop Cross + Morse and realise their vision for the business.”
Astwood Group was advised by RJS Solicitors, Prime Accountants and Leonard Curtis.
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