Oldham investor buys Sheffield wire manufacturer
OLDHAM-based Corporate Acquisition Partners has bought Sheffield wire manufacturer Penistone Reinforcements out of administration.
Corporate Acquisition Partners was supported by a £2.9m asset-based lending facility from Centric Commercial Finance.
The total value of the deal, which has saved 60 jobs, has not been disclosed.
Centric said administrators from BDO in Manchester were called in after the company suffered cashflow problems when a major supplier changed its credit insurance terms.
In a statement Corporate Acquisition Partners, which is owned by Thomas Frost, said: “This was a very difficult deal to pin down, as the target company had gone through a period of difficult trading that impacted on cashflow negatively and camouflaged underlying performance.”
Tim Hawkins, commercial director at Centric Commercial Finance, said: “From time to time, we see businesses with a proud past and a promising future, facing challenges which at the time must seem insurmountable. With Centric’s backing and the support of its advisory team, this business has secured the continued employment of its 60 employees and can look forward to new horizons.”
Penistone was owned by Gillian and Christopher Ward. According to the most recent filed accounts for the year to December 2012 it made a small pre-tax profit of £30,000 on sales of nearly £15m.