Extrusions manufacturer saved from closure in Midlands-advised deal
AN aluminium extrusions manufacturer has been saved from closure after being bought by a Midlands technology firm in an undisclosed deal.
Bristol-based Custom Systems Ltd manufactures all manner of extruded aluminum products, and heat sinks for the electronics and computing industries, as well as for large machinery and generators.
The company had been experiencing financial difficulties due to a reduction in expected turnover from several of its contracts. This was compounded by maintaining payments its premises, which were considered too large for current operations.
A failed attempt to raise external finance forced the company to draft in help from Midlands accountancy firm Smith Cooper, where advisor Dean Nelson was able to arrange the prompt sale of the business.
CSL has been purchased by Versarien Technologies, a subsidiary of AIM-listed Versarien plc. It has secured new orders and saved the jobs of the 23-strong workforce.
Following completion of the deal, CSL’s operations and manufacturing facilities will be relocated to Versarien’s headquarters in Mitcheldean, Gloucestershire. This will provide both business with operating efficiencies and increased sales coverage.
Together, the businesses are able to offer a wider range of thermal products. The acquisition also gives Versarien access to CSL’s prestigious customer base and will provide potential new routes to market for Versarien Technologies’ recently developed porous copper air heat sink products.
Neill Ricketts, CEO of Versarien said: “This is an important acquisition which fits well with our strategy to provide customers with a range of standard and customer specific thermal products, including our patented porous metal foam technology.
“Our further aim is to preserve the maximum number of jobs we can and we look forward to welcoming our new colleagues into the team and sharing our expertise and industry knowledge. CSL’s customers can be assured of a continuation of the high level of service they have come to expect, as well as the opportunity to access an expanded range of products.”
Dean Nelson said: “The acquisition is the best possible outcome for this well-established business and its loyal workforce and we are delighted to have been involved with the restructure, which not only has saved employee jobs, but will also enable Versarien, an ambitious and innovative company, to further expand its operations.”
