Thu, 24 Sep 2026 | BUSINESS NEWS
Cross + Morse, a Birmingham-based power transmission products manufacturer with a history dating back 100 years, is seeking to grow through acquisitions after securing a funding package from Arbuthnot Commercial Asset Based Lending.
The company provides specialist engineering, manufacturing, and distribution services to a worldwide customer base across sectors including steel, oil and gas and sewage treatment. Its product offering spans gears, timing belts, roller chains and freewheel clutches.
Cross + Morse was acquired by Astwood Group, an SME investment firm specialising in acquiring and growing long established family or privately-owned businesses in the region seeking long-term ownership, via a management buy-in in December 2024.
The acquisition of Cross + Morse represented Astwood Group’s first platform investment, with the group now seeking to build on this with further established manufacturing and engineering businesses.
Michael Capewell, director, Astwood Group, said: "Cross + Morse is a long-established manufacturer with a strong team, significant machine base and a great foundation to build on.”
"There is an opportunity to modernise and develop the business further, while growing both organically and through acquisitions. While power transmission is our current focus, we remain open to opportunities in other sectors where we see the right fit.”
Capewell added that the Arbuthnot deal team “understood what we were trying to achieve, were clear about what they could deliver, and then went on to deliver exactly that.”
He continued: “The funding structure was highly competitive and offered a degree of flexibility, which is increasingly rare in today’s market. We believe we've found the right long-term banking partner in Arbuthnot Commercial ABL, with the appetite to support both our organic growth and acquisition strategies."
Richard Ackers, director, Business Development (North East) at Arbuthnot Commercial Asset Based Lending, said: "Astwood Group has clear ambitions for Cross + Morse, and this blended facility structure provides the working capital foundation to help deliver those plans, while also creating a platform to support future complementary bolt-on acquisitions. We look forward to supporting Michael and the team as they continue to develop Cross + Morse and realise their vision for the business."
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