Thursday March 12, 2020
A total of 17 jobs have been saved at welding company Newarc Limited (“the Group”) after it was bought out of administration.
Martyn Pullin and David Willis, Partners in our Restructuring Advisory team, were appointed Joint Administrators of Newarc Limited and Newarc (Exports) Limited on 5 March 2020 after the Group experienced a downturn in trade that led to cashflow difficulties.
At the same time, Martyn and David were also appointed Joint Administrators of Newarc (Newcastle) Limited alongside Tonya Allison, Director in our Restructuring Advisory team in Newcastle, and Newarc (Aberdeen) Limited alongside Iain Fraser, Partner in our Restructuring Advisory team in Aberdeen.
Founded in 1973, Newarc Limited is one of the UK’s leading designer and manufacturers of inverter-based welding power sources for manual metal arc (MMA), metal inert gas (MIG) and tungsten inert gas (TIG) welding.
It supports the UK’s oil and gas and energy industries with innovative and high integrity welding products and solutions, as well as the petrochemical, process equipment, metal fabrication, shipbuilding, construction, aerospace and railway sectors. The business is headquartered in Newcastle and employs 17 people (15 in Newcastle and 2 in Aberdeen).
Following an accelerated sales process and their subsequent appointment, our team secured the sale of the Group to the national welding manufacturer, Weldability. The deal saw the transfer of all jobs and the continuity of trade across both sites.
Commenting on the deal, Martyn said: “Newarc is a fantastic business but the well-documented issues facing the oil and gas sector had taken their toll over time and placed significant cashflow pressures on the company. This deal delivers the best result for all stakeholders, and most importantly saves jobs in Newcastle and Aberdeen as well as ensuring continuity of trade for customers. Weldability is a well-known and trusted provider of welding, cutting and fume-extraction equipment here in the UK and across Europe, we wish the team the best of luck moving forward.”
Gareth Hawkins, Managing Director of Weldability, added: “Newarc is a recognised and trusted British manufacturer and its core products are known for their robustness and reliability. Weldability is delighted to be able to add Newarc to its range of welding solutions, and to extend its operations into the North East of England and Aberdeenshire.”