Recovery specialists step in for aero manufacturer
A PAIR of investors from Leicestershire who target distressed businesses have bought North West Precision Forms, the Wirral-based aerospace parts manufacturer.
Last week TheBusinessDesk.com revealed an unnamed buyer had been found for the firm which makes parts for the European aircraft manufacturer Airbus, the Eurofighter and private jets but fell into administration in June.
Gavin Bewley and Colin Keal of Oakham-based BK Consultants have set up a new business, North West Precision, to acquire the firm for an undisclosed sum. The sale has secured 76 jobs at the business which will continue to operate from its base in Birkenhead.
Mr Bewley said: “Given our own manufacturing experience, the niche business of North West Precision Forms with its blue chip customer profile fitted our acquisition criteria. We have every confidence that this long-established business can maintain its reputation as a manufacturer of excellence within the aviation industry.”
Click here for more manufacturing stories
Joint administrator Paul Flint said: “After trading this long-standing family business for ten weeks, we are delighted to have concluded a sale which will safeguard a significant number of jobs, in what is a difficult area for employment. The deal is also notable, not least because it has been secured in what is still a very challenging economic climate and in a sector that undoubtedly has been affected by the downturn.”
According to a creditors’ report filed last month the business, previously owned by Miles Tudor, Justin Tudor and Michelle Davies, failed after struggling with diminishing margins and losing a contract worth £1.7m.
North West Precision Forms has a turnover of £7m. It was established in 1972 and earns 85% of its income from trade with Airbus which committed £500,000 to support the trading costs of the company during the search for a buyer.
The business collapsed owing Royal Bank of Scotland Invoice Finance £1.8m and a further £470,000 to RBS. It also owed the mortgage lender Commercial First £220,000 and £170,000 to the Merseyside Special Investment Fund, which supported the business in 2007 and 2008.
