Steel jobs saved after owner is found for Cardiff firm
Wednesday April 27, 2022
FRP oversees successful pre-pack sale
We’ve supported the successful sale of a South Wales steel business which has been bought out of administration in a deal that will secure 20 jobs.
Cardiff Docks-based Bemaco Steel specialises in the broking and distribution of steel as well as in laser cutting tubular steel products for its customers in the construction industry, but became insolvent in March after a ruling against the firm in a contractual case, which meant it was unable to continue as a going concern.
We were subsequently instructed to manage an accelerated sale of the business, which attracted significant interest and ultimately resulted in three offers being tabled.
Now the business has been acquired through a pre-pack administration process by FXSteel, a connected party, in a deal worth £4.6 million.
Under the deal, the business will continue to be led by Bulent Unal, previously the sole Director of the Bemaco Steel, alongside fellow Directors, Murat Unal and Mark Halley.
Bulent Unal said: “This deal represents a fresh start for what was historically a profitable business with a strong client base.
“Under the FXSteel banner, we remain a major steel broking, distribution and specialist laser cutting of tubular steel products business based in Cardiff Docks and our combined years of experience within the steel industry mean we are a trusted partner for product sourcing, material financing and distribution.
“I’m pleased to have secured the future of the business for our colleagues and construction sector customers at such an important time.”
Bemaco Steel was founded in 1987 and achieved revenues of £40 million in 2019, though turnover was subsequently impacted by the pandemic.
Andrew Sheridan, Restructuring Advisory Partner at FRP, said: “This deal ensures that all 20 employees will transfer across to FXSteel and secures the future of the business.
“There was substantial interest in the business, which has maintained profitability despite the well-reported challenges being faced by the steel industry, both here in South Wales and around the world. We wish the team at FXSteel every success as they take the business forward.”
Simon Bamford at Gordon Brothers and Nigel Boobier at Osborne Clarke LLP provided valuation and legal advice.