Banbury-headquartered Bibby Financial Services (BFS), which provides finance for SMEs, has acquired Aldermore Group’s working capital finance division in a deal, which will see BFS become one of the largest specialist providers of construction finance.

“Working Capital Finance is a strong business with fantastic people and quality clients so it represents a strong strategic fit for BFS,” said Derek Ryan, the UK managing director of Bibby Financial Services.

“This is a key milestone in our BFS 4.0 strategy which will see us grow our support for SMEs organically and through acquisition.”

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Working Capital Finance’s clients and colleagues will be integrated into the BFS operation over coming weeks.

BFS provides specialist and adaptable trade, asset and working capital finance to help businesses to grow in domestic and international markets. Established in 1982, BFS is part of the Bibby Line Group (BLG).

The company supports nearly 8,500 SME clients around the world. Its products includes foreign exchange, export and trade finance, as well as specialist finance for the construction sector.

One of the first so-called ‘challenger banks’, Aldermore, now part of the FirstRand Group, was established in 2009 and provides financing to UK SMEs, supports investors and homebuyers with mortgage finance and offers an online savings proposition.

Tim Boag, Managing Director for Business Finance at Aldermore said of the BFS deal: “Key to this transaction was finding a buyer who wants to invest in the business over the long term and shared our values and commitment to our clients and colleagues alike.

“In BFS we’ve done this and we’re happy to have found a good home for this business.”

BFS recently reported a 14% increase in turnover for 2022 and 6% growth in debts factored.

In November last year, it announced that it had secured a £1bn securitisation agreement, enabling it to support even more SMEs across the UK over the next few years.

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