Wed, 20 Mar 2024 | BUSINESS SALE
Administrators have secured a number of rescue deals after a Lancashire-headquartered group of manufacturing and engineering businesses fell into administration. Richard Harrison and Howard Smith from Interpath Advisory were appointed as joint administrators to 14 companies in the Pexion Group on March 19, with Harrison and Interpath’s Stuart Irwin appointed joint administrators of another subsidiary, Nitronica Limited, the same day.
Pexion Group specialises in the design, development and manufacture of high-specification precision, additive, subtractive, electronic and fabricated components and sub-assemblies for a range of high-tech industries, including the medical, automotive, aerospace and general industrial sectors.
Over recent months, the group, which is comprised of parent company Pexion Limited and 14 subsidiaries, had come under mounting financial pressure from suppliers as a result of challenging trading conditions, putting pressure on its liquidity position. Directors undertook a review of the group’s sale and restructuring options, but a solvent solution could not be found, resulting in the appointment of administrators.
Immediately following their appointment, the joint administrators secured six separate transactions to rescue 13 of Pexion Group’s operating subsidiaries. Overall, the deals have saved 430 jobs at the group’s sites across the UK.
A company owned by Baaj Capital LLP has acquired Chorley-based parent company Pexion Ltd, as well as Rictor Engineering Ltd (based in Denton), Alan Gordon Engineering Ltd (based in Chorley), Paragon Precision Ltd (based in Hull), SKN Electronics Limited (based in Birmingham), HT Tooling Solutions Ltd (based in Manchester), Elite Tooling Solutions Ltd (also based in Manchester) and Oxton Engineering Ltd (based in Birkenhead).
Amcomri Group Ltd has acquired Knaresborough-based Claro Precision Engineering Limited and Hitchin-based Drurys Engineering Limited. Nitronica Ltd, based in Ballynahinch, Northern Ireland, has been sold to Hinchtech Ltd and Simtek EMS Ltd, based in Margate to Westwood EMS Ltd.
Geometric Manufacturing Ltd has acquired Tewkesbury-based Precision Engineering Pieces Ltd and Bryden Venture Engineering Limited has acquired Clitheroe-based Clitheroe Light Engineering Ltd.
Joint administrator and Interpath Advisory Managing Director Richard Harrison commented: "We are delighted to have concluded these six transactions which not only willl safeguard the future of thirteen 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 and tiered supply chain providers across key industries including the aerospace, defence and automotive sectors.”
"The complexity of the group, coupled with the financial challenges it was facing, meant there was a requirement to complete six separate transactions to a very short timetable. As such, we are enormously grateful to the very many stakeholders who worked collaboratively with us to get these transactions over the line.”
Newmarket-based subsidiary Phasa Ltd, however, was not included in the rescue transactions and the joint administrators will now take steps to wind the business down.
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