Manufacturing business saved as new buyers step in

A manufacturing business that called in administrators over the summer has been sold.

Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory were appointed as joint administrators of MTAG Composites, MTAG (Holdings) Limited and Electric Future Group Limited on 12 July.

Based in Coningsby in Lincolnshire, MTAG Composites is the trading company in the group which manufactures composite parts for the rail, aerospace, automotive, construction and leisure sectors.

Following RSM’s appointment, the joint administrators temporarily closed down the company to assess the position, but since 19 July have continued to trade the Composites business while looking for a buyer. ‘Minimal’ jobs cuts were made at the time.

MTAG Composites was sold on 14 November to a new entity, GRP Alliance, which intends to continue to trade from the existing site in Lincolnshire. GRP also has a first option to purchase the assets of MTAG (Holdings) over the coming months.

RSM was advised by Sarah Foster, Natalie Bromley and Jawad Ilyad from Addleshaw Goddard solicitors, with support from Sanderson Weatherall agents.

Raikundalia said: “We are delighted to have preserved specialist employment in the local economy, and completed the sale of this well-respected business. We also welcome the new investment that the purchaser is providing for MTAG, which ought to secure its long-term future and create a platform for growth.

“We are particularly grateful to the loyal staff, customers and other stakeholders who have supported us during our trading period given the uncertainty of the outcome following our sudden appointment.”

MTAG’s latest available accounts show that the firm employed around 120 people before it entered administration. Documents show that the firm owed over £4.3m to creditors when administrators were called in.