United Kingdom

Details

  • Service: Advisory, Transactions & Restructuring
  • Type: Press release
  • Date: 02/04/2013

387 jobs saved at AIM-listed Metalrax Group Plc 

 

Will Wright and Mark Orton from KPMG have today been appointed joint administrators to AIM-listed Metalrax Group Plc, and its subsidiaries Metalrax Engineering Support Services Limited, Metalrax Specialist Applications Limited and Down & Francis Industrial Products Limited. 

 

On appointment, the administrators sold the business and assets of the niche engineering group to a group of companies headed by Bowman Birmingham Limited.  The group will trade as Arc Specialist Engineering and is backed by specialist private investors who have committed to a significant investment programme in the company.  In addition, as part of the transaction, solvent share deals were completed for two companies within the group, both of which were not affected by the insolvency process – Metalrax Housewares Limited, which was sold to Cable Capital Partners Limited and Metalrax Overseas Holdings Limited, which was also sold to Arc Specialist Engineering – securing a total of 387 jobs.

 

Will Wright, joint administrator from KPMG said: “The group has experienced difficult trading conditions for some time, primarily within their consumer durables division.  While the group’s management team has divested in recent years to focus upon niche areas, trading in this division has led to a significant drain on the group’s financial situation.

 

“Being able to sell the business and assets, together with shares in solvent businesses within the group, has been a great solution to securing a future for the business and more importantly just under 400 jobs.”

ENDS

 

 

For further information please contact:

 

Sorrelle Cooper, Senior PR manager, KPMG: 020 7694 8527 / 07932 078218

 

Notes to editors:

 

Location and employee numbers by businesses within the Metalrax Group Plc

 

Business

Location

Number of employees

Metalrax Group Plc

Alvechurch

6

Metalrax Engineering Support Services Limited

Wolverhampton

57

Metalrax Specialist Applications Limited

Luton & Redditch

58 (Luton); 77 (Redditch)

Down & Francis Industrial Products Limited

 

0 (holding company)

 

 

Businesses sold as part of the transaction but not affected by the insolvency process

 

Business

Location

Number of employees

Metalrax Housewares Limited

Burnley, Great Ryburgh & Oldbury

100 (Burnley); 15 (Great Ryburgh); 39 (Oldbury)

Metalrax Overseas Holdings Limited

Kentucky, US

35

 

 

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

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