Steel Dynamics Group gets £17m funding from Cynergy Business Finance

Blackburn based Steel Dynamics Group has reached a funding agreement that will deliver £17m to support its continued growth and expansion.

On top of that package of support, it has also received an undisclosed equity investment from Bolt Industries.

The funding from Cynergy Business Finance, which takes the form of an invoice discounting facility, inventory finance, asset finance, and a cashflow loan, will enable Steel Dynamics Group to enhance its operations and continue its drive to reduce customer costs, enabling UK manufacturing to flourish. 

North West accountancy and business advisory firm, Cowgills, led by Debt Advisory partner Benjamin Day, advised the group on the refinance. 

Steel Dynamics Group, founded in 2011, is a fast-growing UK metals company supplying and processing stainless, carbon, and non-ferrous materials through its divisions Steel Dynamics UK, Offshore Stainless Supplies, and P and P Bornmore Metals.

It was founded by Rob Pattenden and Danny McKinley with a simple mission - to be the lowest cost per ton steel processors, delivered on time door-to-door. 

It is strategically located at the UK’s home of steel, The Walker Industrial Estate in Blackburn.

The group primarily serves high-spec applications in nuclear, offshore, and petrochemicals via its full suite of fibre laser, hi-def plasma and waterjet cutting machines, including the UK’s largest 14M x 4M waterjet cutting machine, 

This latest funding package from Cynergy Business Finance highlights its role as a key player in the UK’s industrial sector. This deal further reinforces CBF’s position as a flexible and forward-thinking lender in the asset-based finance market. 

Danny Monksfield, pictured, corporate sales director at Cynergy Business Finance, said: “We’re proud to support Steel Dynamics Group at a pivotal stage in its growth journey. This funding demonstrates our commitment to backing ambitious, high-performing businesses that are driving the UK’s industrial sector forward. At Cynergy Business Finance, we’re focused on providing flexible solutions that empower our clients to scale with confidence." 

Ian Griffiths, chief executive of Steel Dynamics Group, added: "Partnering with Cynergy Business Finance and Bolt Industries has given us the financial flexibility and confidence to accelerate our growth plans.

"Its understanding of our industry and tailored funding approach made them the ideal partner for this next phase. We're excited about what this means for our team, our customers, and the future of Steel Dynamics Group." 

Benjamin Day, debt advisory partner at Cowgills said “It’s always a pleasure working with Ian and the Steel Dynamics Group to support its impressive journey. 

"Cynergy were superb throughout the process and very thorough in its approach to understand the business and to come up with a funding structure that works. 

"Its unrivalled access to senior members of its team really helped build the relationship in the lead up to completion.  I’m looking forward to seeing where this partnership goes!” 

Cynergy’s due diligence was supported by Interpath Advisory and European Valuations, with Bermans providing legal advice.

AB Corporate supported the investment from Bolt Industries and Mills and Reeve advised Steel Dynamics. 

Cynergy Business Finance is the asset-based lending subsidiary of Cynergy Bank.  

It is committed to delivering a comprehensive set of services to meet the evolving needs of our clients and provide a range of finance solutions, between £500,000 and £25,000,000 per eligible business, against business assets.