Professionals: Law firm advises on £54m technology takeover; Yorkshire advisers appointed administrators to packing company; and more

A team of lawyers from the Leeds office of DWF has advised e-learning services and technology provider Learning Technologies Group (LTG) on its £54m offer for AIM-listed NetDimensions.

LTG’s £54m offer for the integrated enterprise talent management software platform is being funded by a £46.5m placing alongside debt facilities provided by Barclays and LTG’s chairman Andrew Brode.  

The takeover will see NetDimensions’ mainly blue chip client base across operations in 40 countries, principally in UK, Hong Kong, USA and Germany, transfer to LTG.

DWF’s Leeds-based team, led by corporate partner Lester Wilson with support from banking partner Chris Ramage and tax partner John Toon, advised LTG on the placing, offer and debt facilities.

Wilson said: “We’ve worked with LTG since its introduction to AIM in 2013.  This is its fifth acquisition since then and should prove transformational for the group.  It was a demanding transaction delivered against a challenging timetable.  We very much look forward to helping LTG integrate NetDimensions.”

Peter Steel of Panmure Gordon’s Leeds office advised NetDimensions.

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Yorkshire advisers Mark Ranson and Mike Kienlen of Armstrong Watson’s restructuring, recovery and insolvency practice were appointed joint administrators to Benfield Shrink & Seal last month.

The company, based at the Port of Tyne in South Shields, has used the trading style Benfield Pack and Wrap since 2014.  

The company provides contract packing services to a number of well-known manufacturers of consumer products and has achieved BRC accreditation in Consumer Products.

Earlier this year, it relocated its operations to its current premises at the Port of Tyne as the lease for its previous premises had expired and the property requires substantial renovations.  Whilst trading during the first half of most years had in recent times been challenging, a major contract for the latter half of each year was expected to provide sufficient profit to cover the costs of the move.

Unfortunately, whilst the contract has provided significant turnover for the business in the latter half of 2016, it has not proven to be profitable, the administrators said.

At the end of December, the business could not continue to service its liabilities given the lack of profit combined with the quieter trading period envisaged over the next few months. 
With the immediate work available to the company being limited at this time of year, there has not been the opportunity for the joint administrators to undertake any trading.  As a result, all 23 members of staff were made redundant shortly following appointment.

Ranson said: “We are continuing to seek a purchaser for the business and assets of this North East company and we hope we will be successful in finding a purchaser.  However, there is a very limited window of opportunity and I would encourage any potentially interested parties to contact me immediately to discuss their interest whilst we explore all options to realise the assets.

“We will be working to provide support to the employees at this difficult time in conjunction with employment specialists so that their claims with the Redundancy Payments Office may be processed as quickly as possible.”