Pre-pack for Jacuzzi business with £90m pension liability
MANCHESTER-based HLD Capital has put several companies associated with the Bradford bath and sink manufacturer Spring Ram into administration over a £90m pension liability.
HLD, led by Demis Ohandjanian and Lindsay Khan, acquired the Spring Ram Corporation in late 2012 and has since bolstered its presence in the sector with the acquisition of Hull-based bath maker Reva.
The Spring Ram deal included the Jacuzzi UK subsidiary, later renamed Astracast, which was the main employer to the Jacuzzi UK defined benefit pension scheme.
The Jacuzzi pension is now being transferred to the Pension Protection Fund which will maintain payments to existing pensioners and pay future pensioners around 90% of what they would expect to receive.
In a creditors’ report for Spring Ram, renamed CRS Old, administrators at Leonard Curtis in Manchester, said: “The principal liability for the scheme remained with Astracast, with the company providing a guarantee. The scheme had a significant deficit, estimated by Astracast’s directors at circa £90m. The company was not in a position to honour this guarantee.
“Despite attempts by Astracast, the trustees of the scheme and the pension regulator to reach a satisfactory compromise as regards the deficit, no agreement was reached.”
Astracast was put through a pre-packaged administration with HLD acquiring the assets through Ashworth Global Pipe Systems, which has now changed its name to Astracast, and the company is continuing to trade.
According to the Leonard Curtis document CRS Old also owes related companies around £103m and has total liabilities of £193m. No one at Astracast or Leonard Curtis could be reached for comment.
