Pre-pack deals save 430 jobs at manufacturing group
Administrators have agreed six pre-pack deals to save 430 jobs at a Lancashire manufacturing group.
Richard Harrison and Howard Smith from Interpath Advisory, were appointed joint administrators to 14 companies across Pexion Group.
The deals included the sale of Precision Engineering Pieces to Geometric Manufacturing, with 38 members of staff moving over. The two Tewkesbury companies are based on opposite sides of junction 9 of the M5.
Richard Harrison, joint administrator and managing director at Interpath Advisory, said: “We are delighted to have concluded these six transactions which not only willl safeguard the future of 13 of the group’s operating subsidiaries, but importantly, safeguards 430 jobs.
“Pexion is a highly diversified group which supplies some of the world’s largest OEMs (original equipment manufacturers) and tiered supply chain providers across key industries including the aerospace, defence and automotive sectors.”
Baaj Capital bought eight, mainly North West, companies which employed 144 people.
Nitronica has been taken over by Hinchtech, and Simtek EMS has gone to Westwood EMS.
Amcomri Group has taken over Claro Precision Engineering and Drurys Engineering, and Clitheroe Light Engineering has bought Bryden Venture Engineering.
However, 17 people have been made redundant – 13 at the parent company, Pexion, and four people at Phasa, a Newmarket-based company which is to be wound down.
The Pexion Group was acquired in January last year in a deal valued at £34m by London-based investment firm RDCP Group, which gave it a 75% stake in the £55m-turnover, £7m-EBITDA business.
RDCP also provided Pexion with a £15m acquisition facility to support bolt-on acquisitions and grow EBITDA to more than £20m within five years.
Over recent months, Pexion had experienced challenging trading conditions and had started to come under increasing financial pressure from its suppliers.
This, in turn, put pressure on the group’s liquidity position. In response, the directors sought to undertake a review of the sale and restructuring options available to them, but when a solvent solution could not be found, they took steps to seek the appointment of administrators.
