Storal operates a portfolio of high quality day nurseries across England. Since its first acquisition in November 2016, Storal has acquired 20 nurseries in 14 transactions mainly in suburban locations. Prior to approaching Grant Thornton, the Group had successfully received investment from high quality investors with a deep knowledge of the nursery sector.
With a significant deal pipeline, Storal Learning approached Grant Thornton to help them refinance their existing loans to a more flexible debt package which can be used to facilitate the next phase of growth.
Despite the impact of COVID and the associated lockdowns, Storal continued to perform strongly and as such we were able to commence a competitive process.
We considered a diverse range of alternative debt solutions in the market including a select number of debt funds and challenger banks and despite several competitive offers, quickly refined the lenders down to the incumbent bank and Tosca Debt Capital (TDC).
Storal decided to move away from their incumbent lender to TDC. They were selected as preferred funder as their bespoke offer was built around a strong understanding of the company and shareholders’ commercial growth objectives.
The deal we negotiated provided certainty of deliverability for Storal and provides the business with optimal flexibility to pursue their buy and build strategy.
Refinancing our debt during the coronavirus pandemic was never going to be easy. We went through so many ups and downs along the way with fear of continued lockdowns, credit markets tightening and a general fear of the unknown. The silver lining through all of this was Craig Cheetham’s and Grant Thornton’s unwavering support to help us navigate these unique challenges. Ultimately we believe they helped us find the right lender at the right time for our stage of growth.
Varun Chanrai Co-Founder, Storal Learning LtdWe are delighted to have provided growth capital to Storal, one of the UK’s fastest growing consolidators in the early years education market. Ash and Varun make for an exceptional management team and have a clear strategic vision for the future. TDC’s funding from the institutionally backed Fund III has been structured in a flexible way to support a number of exciting growth opportunities, with the deal representing TDC’s seventh investment of 2021. We continue to see high levels of transactional activity and remain committed to funding UK SMEs as the economy continues its recovery from the pandemic.
Craig Monks Associate Investment Director, Tosca Debt Capital
