Motorhog, the Doncaster-based vehicle recycler, is on the road to growth after securing £8 million backing from Lloyds Bank Commercial Banking in Sheffield.
The company is buying three new sites, including one in Doncaster and sites in Peterborough and Newcastle-upon-Tyne.
Motorhog started out as Doncaster Motor Spares in 1939 and has grown into one of the UK’s leading dismantling and salvage specialists, with 180 employees at a dozen sites.
The company specialises in recycling parts from written off, unwanted, confiscated and abandoned vehicles, sourced from local authorities, police forces and insurance companies and sold online as well as from the company’s sites
Its turnover has increased from £2.4 million to £24 million in 12 years.
Managing director Richard Martin said: “The launch of our southern operations in 2011 gave the company a different dimension and helped us to secure several new business opportunities.
“We’re looking to build on this and expand our range of coverage by acquiring more sites in strategic locations across the UK.
“The flexible structure Lloyds Bank provided showed a belief in our business. This support for our acquisition plans was a key factor behind our decision to switch banking providers.”
Ryan Sorby, relationship director at Lloyds Bank Commercial Banking in Sheffield, said: “Motorhog is a business that has strong growth ambitions and a clearly defined plan to help achieve these goals.
“The move to acquire further sites in different parts of the country makes sound commercial sense and should further cement their position as the leading independent operator in this sector.”
Lloyds Bank business development director Tom Rumboll, said: “We proactively targeted Motorhog as an exciting, growing and extremely well-managed business.
“It is fantastic to add Motorhog to our growing portfolio of clients and testament to the work both the Lloyds and Motorhog teams put into making this happen.”