Speciality Coatings (Darwen) Limited, a manufacturer of vinyl-base and plastisol for the wallcoverings industry, has been acquired out of administration in a pre-pack deal that has safeguarded 37 jobs.
Anthony Collier and Russell Cash, Partners in our Manchester office, were appointed Joint Administrators on 7th March 2018 after the business had suffered cash flow pressures. Upon appointment, the Joint Administrators secured the sale of the business and its assets to Speciality Coatings Limited (SCL), which is independently owned by the private investment firm, the HLD group of companies (HLD).
Commenting on the transaction, Anthony said: “We have worked closely with the directors to explore all options but given the cash flow difficulties the company has experienced, a sale via Administration delivers the best result for all stakeholders in the circumstances. Most importantly, this deal saves a significant number of jobs in the local area.”
David Myles, Special Operations Director, at HLD, added: “SCL is a unique manufacturing business and we’re pleased to have secured an acquisition that not only safeguards a significant number of jobs, but ensures continuity of trade for key stakeholders. The business has supplied UK and European household brands for decades and we’re looking forward to continuing those long-term relationships with our valued customers.”
The business will continue to be led by Managing Director Paul Phillips, and will continue to trade from its existing site on Dewhurst Street, Darwen.
We were advised on the sale of the business by Pinsent Masons LLP.
HLD was advised by Addleshaw Goddard LLP.
Banking facilities were provided by Close Bros (Jeremy Bolton).