Doncaster firms gain bank funding

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Pharmaceuticals wholesaler DE Group has been acquired by its management in a deal backed by a £37 million funding package from RBS Invoice Finance.

The deal was completed as another Doncaster company, Motorhog, announced it had acquired sites in Oldham and Blackburn, with the help of a £1m funding package from Lloyds Bank Commercial Banking.

DE Group is one of the UK’s largest wholesalers focusing on a restricted range of generic pharmaceuticals and other fast-moving products.

It employs 300 people at plants in Northumberland, the West Midlands, Belfast and East Kilbridge, as well as Doncaster, and has been acquired by managing director Mark Gulliford and financial director Andy Wilson.

Mark Gulliford said: “This is an exciting period for Andy and myself, having both worked within the business for a number of years.”

RBS Invoice Finance corporate development director Paul Goodchild added: “The sale of the business to such experienced and well respected individuals marks a milestone in the firm’s evolution.”

Motorhog specialises in recycling parts from written off, unwanted, confiscated and abandoned vehicles and will also use the cash to boost working capital.

Managing director Richard Martin said: “Our growth strategy is based upon acquiring good sites in key strategic locations across the UK and both of these locations fit that category.

Lloyds’ Tom Rumboll said: “Motorhog has a well-designed and successful growth plan. The move into the North West makes sound commercial sense and will further enhance their position as the leading independent operator in the market.”