Baldwin gobbles up hotplate maker

LANCASHIRE hotplate manufacturer Sugden – with net assets of £1m – has been snapped up by Baldwin Engineering Holdings for a seven-figure sum, safeguarding the jobs of its 15 staff.

Baldwin Engineering will move its operations to Sugden’s existing premises in Barrowford, Nelson, where the site offers capacity to expand over the next five years.

Baldwin Technical Services, a subsidiary of the engineering company, manufactures and installs control systems for the food industry and has worked alongside Sugden’s as a sub-contractor for many years.
 
The two companies collaborate on many projects and list major companies such as Warburton’s, Premier Foods, and Allied Bakeries among their clients. It is planned that operations of Baldwin Technical Services will remain in Heywood.

The Royal Bank of Scotland (RBS) has supported the acquisition with an £830,000 funding package comprising of a £750,000 loan to help finance the acquisition costs and an £80,000 working capital facility to aid ongoing cash flow.

Managing director of Baldwin Engineering Holdings, Chris Baldwin said: “Strategically, our acquisition is a great result for both businesses, they complement each other and are an ideal fit and will help us to secure growth and increased profitability across the board.

“I’d like to thank the team at RBS for their funding support.”

Corporate relationship director, RBS Corporate Banking  Gary Mather, said: “I am really pleased that the takeover bid has been successful and that we have been able to put together a suitable deal to help finance it.  

“Having worked alongside Chris Baldwin since 2006 and I am in no doubt that he will be successful in running both businesses, they are an ideal fit and the merger of the two will really enhance their profitability and future growth potential, securing employment in the local area.”