Specialist manufacturer acquired out of administration
A Coventry firm is the new owner of a Welsh manufacturer after acquiring the business out of administration.
Cambrian and Sovereign Holding Group, a new company set up by the owners of Sovereign Park & Leisure Homes in Coventry has acquired luxury holiday homes and lodges manufacturer Cambrian Park and Leisure Homes from administrators FRP Advisory.
The deal preserves the brand and staff of the Porthmadog-based firm, which manufactures bespoke lodges for the leisure sector.
Revenues at Cambrian had grown strongly over the past two years and the business had been operationally restructured in the second half of 2016 including a centralisation of manufacturing to its purpose-built unit in the town.
However, the transition was not as effective as envisaged which led to significant losses and cash-flow pressure despite a strong order book from its customer base.
Working with advisors from FRP Advisory, the firm began an accelerated sales process in early February which resulted in competing offers for the business and assets.
Shortly after their appointment, the joint administrators at FRP Advisory completed the sale of the business and assets to Cambrian and Sovereign Holding Group.
The business will continue to operate from its main manufacturing site at Gelert House, Porthmadog, North Wales.
Ben Woolrych, joint administrator, along with fellow partner Lila Thomas, said: “We are delighted to have secured the future of the Cambrian business and brand, which is one of the leading manufacturers of luxury holiday lodges.
“This is a great result for the manufacturing sector in the area, the employees and the customer base ahead of the UK holiday season. We wish the management and staff all the very best for the future.”
Vincent McCullagh, managing director of Sovereign Park & Leisure Homes and now also Cambrian, said: “We are absolutely delighted with our acquisition which will give us a fantastic future in the lodge manufacturing sector, which was the next step we were looking to take following our success in the residential park home market. We are looking forward to continuing the strong Cambrian brand for a long time to come.”
The joint administrators were advised by Phil Farrelly, at the Manchester office of Bermans and Cambrian and Sovereign Holding Group was advised by Alastair Frew, of Lodders Solicitors in Stratford upon Avon.
