Deals confirmed as Cosalt enters administration
ADMINISTRATORS from PwC were this week appointed to Cosalt with the company’s shares cancelled from the Stock Market.
David Kelly and Andrew Ross are the joint administrators of the Grimsby-based marine safety business.
The pair have sold the company’s 100% shareholding in GTC Holdings and, as previously reported, have offloaded the Cosalt Offshore Norway A/S business to Dunwilco (1793), a company backed by NBGI Private Equity.
The two operations will continue to trade normally under separate ownership. The Offshore business has 240 employees in the UK and 25 in Norway and none of the jobs have been affected by today’s announcement.
The companies specialise in the offshore services market in the UK and Norway providing services including repair, refurbishment and replacement of lifting equipment; manufacture of ropes and slings; tooling hire; sale and maintenance of lifeboats; rental and service of rigging lofts; and inspection services.
Negotiations are ongoing for the sale of Cosalt’s 100% shareholding in workwear business Ballyclare, with the business continuing to trade as normal.
The workwear business principally operates from Stockport, with an operation in Barnsley and two distribution centres located in the South East. It has 58 employees.
Law firm Addleshaw Goddard’s business support and restructuring team, led by Andrew Smith with support from managing associate James Davison, advised on the deal working alongside PWC.
NBGI is an investor in Aberdeen-based ATR Group. ATR chief executive Keith Moorhouse will lead the enlarged group following the Cosalt Offshore deal.
He said: “This deal will be welcomed by Cosalt’s staff, customers and suppliers as an end to a period of uncertainty. Cosalt has an excellent technical and operational reputation and is an integral part of the supply chain of many of the energy sector’s leading oil service companies and operators.
“Cosalt and ATR will be pooling their significant resources and technical expertise to deliver a broad, integrated service offering to the oil and gas industry.”
“The deal will bolster ATR’s growth by opening up the Norwegian sector and improving its operational capacity through access to Cosalt’s skilled engineers, technicians and inspectors and its substantial equipment hire fleet.”
It is hoped that the combined business can grow to more than £100m annual turnover organically and through acquisitions.