Thu, 01 Jun 2023 | ADMINISTRATION
A Mansfield-based packaging business has been acquired out of administration, completing the rescue of a company that fell into insolvency earlier this year. Administrators from FRP Advisory secured the sale of iTEC Packaging (Mansfield) Ltd to packaging group Alpla UK, securing 70 jobs.
iTEC Packaging fell into administration in April, with FRP’s Martyn Rickels, Simon Farr and Allan Kelly appointed as joint administrators to iTEC Packaging (Mansfield) Ltd and sister business iTEC Packaging (Chester-Le-Street) Ltd.
Last month, the joint administrators completed the sale of the Chester-Le-Street business to Shalam Packaging Group, which acquired the business and assets as a going concern, rebranding the firm as Shalam Thermoforming (UK) Ltd.
The joint administrators have now completed the rescue of the business with the sale of the Mansfield operation to Alpla UK. The Mansfield plant manufactures packaging for the dairy industry, using compression and injection moulding to make HDPE lids for dairy bottles.
In the year to December 31 2021,the business reported revenue of nearly £26.9 million, but fell to a £1.5 million pre-tax loss. The losses were blamed on a mixture of higher material and labour costs, as well as lower turnover from lids, with retailers increasingly seeking to reduce single use plastic. Its net assets were valued at £10 million at the time.
Jens Seifried, managing director of Alpla UK, commented: "With the acquisition of the iTEC Packaging (Mansfield) business, the global packaging and recycling specialist Alpla is expanding its expertise as a packaging system provider in the UK market.”
Seifried added that the acquisition meant the company could “increasingly offer the UK dairy industry sustainable, efficient and innovative packaging solutions."
Joint administrator Martyn Rickels said: "iTEC Packaging was a long-established business and player in the dairy supply chain so we're delighted to have secured a new buyer. Alongside the transaction to sell the sister business in Chester-Le-Street, this has helped save nearly 200 jobs in a short space of time, as well as protecting the customer base with ongoing production.”
Download our free guide: How to find and buy distressed businesses and assets
Established food manufacturing business with doubled production capacity and a strong second tier management team, servicing 12 active clients with a growing forward order book.
This well-regarded and relocatable Manufacturing business has now come to the open market. Since its establishment in 2017, the business has acquired a great reputation amongst its customers, known for its quality service and friendly staff. Both its...
The business designs and builds specific to customer requirements for end users predominantly in oil & gas, petrochemical, chemical and pharmaceutical industries. They also provides assistance in areas such as on-site commissioning, systems complianc...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.