Ecobat Resources UK Ltd (“ERUK”) has secured an innovative £44 million Asset-Based Lending (“ABL”) facility from Shawbrook to support a carve-out acquisition by Splitstone Capital LLP (“Splitstone”) and to fuel continued growth. The ABL solution will enable the UK’s largest recycler of lead batteries to reinforce its market position, further improve its infrastructure and continue its ESG leadership in the sector following the carve-out from Ecobat LLC. Under its new ownership, ERUK will revert to its prior name of HJ Enthoven (“HJE”).
Founded in 1938, HJE operates across three UK sites, processing up to 150,000 tonnes of scrap lead batteries annually and delivering high-purity recycled lead products to automotive, industrial, and construction sectors. HJE operates a proven closed-loop system recovering over 99.97% of lead content, setting the benchmark for environmental performance and compliance in its industry.
Splitstone is a London-based private equity firm founded in 2024, specialising in acquiring UK and Ireland-headquartered non-core divestment opportunities in the industrial and business services sectors.
The bespoke ABL structure provided by Shawbrook leverages HJE’s assets to optimise working capital, delivering the flexibility required for operational expansion and strategic investment. This partnership marks a significant milestone in the company’s journey as an independent entity under Splitstone. The lending facility also reflects Shawbrook’s dedication to supporting market leaders who prioritise ESG and operational excellence.
Peter Foxwood, Managing Partner of Splitstone Capital, said: “HJE is a strongly-performing market leader with a vital and enduring role in the circular economy. We are excited to support the managing director, John Manning, and his team as they build on the company’s impressive heritage. This transaction exemplifies the kind of complex carve-outs we actively seek out, where focus, pace and creativity are essential to deliver a successful outcome.”
John Manning, Managing Director of HJE, said: “This agreement marks an important milestone for our people and customers. Splitstone’s pragmatic and supportive approach stood out throughout the process. With their backing, we’ll be well placed to invest in our operations, enhance service and continue our leadership in safe, sustainable lead recycling.”
Peter Foxwood added: “This transaction has been central to HJE’s plans, and Shawbrook has played a key part in making this happen. The Shawbrook team’s tailored approach and industry insight enabled us to unlock value and invest confidently in HJE. The highly flexible Asset-Based Lending facility aligns with our growth ambitions and sustainability objectives.”
Oliver Sutton, Director, Asset Based Lending at Shawbrook, said: “HJE represents the highest standards in British manufacturing, sustainability and innovation. Their operational excellence and market leadership make them an ideal partner for Shawbrook, and we look forward to supporting their next phase of development.”
Oliver Jenkins, Director, Asset-Based Lending at Shawbrook, added: “The structuring capability we’ve created in our Asset-Based Lending solution provides the flexibility and strategic support needed for more complex, multi-faceted transactions, such as Splitstone’s recent carve-out acquisition. This facility will enable HJE to strengthen their market position, as well as continue with their growth and sustainability journeys.”
Squire Patton Boggs acted for Shawbrook on the transaction. Splitstone Capital were advised by FRP (Debt Advisory) and Gunner Cooke (Debt Legal).
