Lodders and Claritas steer FDC to sale to Mercia

Lodders acts for FDC on ‘strategically important’ sale

Lodders’ Corporate team, Parisi Tax and Claritas Tax, acted for the sellers of Birmingham-headquartered Frontier Development Capital Limited on its sale to AIM listed Mercia Asset Management PLC, which completed this month (December 2022).

Frontier Development Capital Limited (FDC) is a leading, regionally focussed lender, which provides debt packages of between £2 million and £20 million to UK SME businesses, property developers and manufacturers.

Since its launch in 2016, and with the guidance of its senior management team, FDC has grown its funds under management to £415 million.

For Mercia, the acquisition takes its funds under management to around £1.4 billion.

Shared passion

Commenting on the deal, FDC’s CEO Sue Summers said: “Mercia has long been a business we’ve admired. Our shared passion for helping some of the UK’s most exciting SMEs to thrive through supportive capital, makes Mercia the natural partner of choice as we look to continue the growth we have experienced since launching in 2016.

“Furthermore, Mercia’s reputation and reach will be highly additive to both our future fundraising efforts and identification of potential lending opportunities. Mercia has established itself as a go-to provider of capital across the UK regions, and we’re excited to be part of their vision to be the first choice for investors, investees and employees.”

Lodders’ Corporate Team acting on the deal was led by partner Graham Spalding, supported by Nicole Romera and Lydia Elvin, and worked alongside Parisi Tax. The Claritas Tax team was led by partner Iain Wright, supported by Ses Memhi, Katie Edwards, Rachael Brown, Amanda Allen, Elliott Morrell and Roshan Paul.

Strategically important sale

Graham Spalding says: “We are delighted to have acted for FDC on this strategically important sale. FDC is a well-known, local SME debt provider in UK M&A, as well as property finance provider and we wish the management team every success for their continued development under their new ownership.”

Iain Wright of Claritas said: “It’s been an absolute pleasure working with Sue and the team from Frontier Development Capital on their sale to Mercia Asset Management. FDC and Mercia are significant players in the deals market locally and across the UK so the combination of the two businesses will make them an even greater force. We wish the team the best of luck for the next stage and congratulate all involved.”

Lodders Corporate team provides expert legal advice to owner managers and business owners looking to divest, grow and raise finance.

Founded in 2012 and operating across Birmingham and Manchester, Claritas Tax is one of the UK’s leading, independent full-service tax advisory and compliance practices, focused primarily on entrepreneurial and ambitious businesses, their stakeholders, and investors. For more information, visit: www.claritastax.co.uk