Acquisition helps save three companies and 70 jobs

Hull-based H&R Healthcare has acquired the Pretty Legs Holdings group of companies, avoiding three firms entering administration and saving around 70 jobs.

Andrew Jackson Solicitors LLP advised on the acquisition on behalf of the UK distributor of medical products, which was completed for an undisclosed sum. The firm also advised H&R Healthcare through a complex restructuring programme that avoided imminent risk of administration of the group. Pretty Legs is a UK manufacturer of medical and consumer hosiery.

Azher Quyoom, a partner in the York office of Andrew Jackson specialising in restructuring and insolvency matters, together with corporate associate Daniel Hammond, led a 10-strong multi-disciplinary team, through the process.

Quoyoom said:  “We felt that if we were able to avoid administration there would be a softer impact on the NHS supply chain – the Medalin subsidiary, for example, is the UK’s leading manufacturer of prosthetic socks – and therefore less chance of business disruption than would inevitably be the case with an administration.

“We proposed a voluntary arrangement to restructure the core business of the group, which, once agreed with key stakeholders, would avoid administration for all three companies, maintain business continuity for customers and help to safeguard 70 UK-based manufacturing jobs.

“The restructuring and subsequent acquisition would not have been possible without the collaborative efforts of key stakeholders.”

Mike Hoskins, managing director of H&R Healthcare, said: “We are absolutely delighted with the successful outcome of this acquisition.

“H&R Healthcare already works with the Pretty Legs group, so this is a great fit and a logical extension of that relationship whilst enabling us to support and invest in a group of companies, which has a long-standing reputation for producing innovative, high quality textile garments in the UK.

“Pretty Legs Holdings will complement our existing Leicester based business, CUI International, a major UK manufacturer of hernia and ostomy support wear, to create a UK Centre of Excellence with expertise in the development and manufacture of specialist textiles.”

HSBC provided the financial backing and also guidance through success of the deal.