FRP’s Restructuring Advisory team delivers swift sale for manufacturer amid automotive sector challenges

FRP executed an accelerated sales process for an automotive plastics manufacturer, safeguarding 34 jobs and ensuring continuity

Background

Founded in 1996, Formula Plastics is a family run business most known for specialising in moulding high tolerance precision components (plastic injection moulding) for a variety of sectors, but predominantly the automotive industry. Their offering also includes design and tooling, production assembly, warehouse storage facilities, reshoring and tool transfer expertise.

The automotive industry has faced turbulent market conditions, with manufacturers delaying projects – particularly in electric vehicle production – due to supply chain uncertainty and shifting consumer demand. These factors have unfortunately impacted the Company with 90% of its production being made up of projects based in this industry. Over the years, to help strengthen cashflow, the director loaned the Company funds and sought outside investment, including an unsuccessful share sale.

When a main contract which was due to commence in May 2025 was postponed for 6 months, the Company did not have sufficient funds to sustain the delay and therefore the director was forced to seek advice, thereby instructing FRP.

Action

Our Restructuring Advisory Partner, Allan Kelly and Director, Shaun Hudson were instructed to assist the Company and immediately commenced an accelerated marketing process to explore a sale of the Company’s business and assets on a confidential basis. With cashflow constraints tightening, the team executed a streamlined and targeted process to maximise interest and secure a swift deal within just one month. During this time, the team liaised with key stakeholders to mitigate a worsening cashflow position by ensuring critical payments were made, including wages in order to remain trading. Using FRP’s Dataroom, the team reached out to over 700 parties, followed by a negotiation process with those interested, before securing an optimal offer. This resulted in the appointment of Allan Kelly and Shaun Hudson as Joint Administrators and a successful sale of the Company’s business and assets to Formula Components Limited.

Outcome

FRP’s Restructuring Advisory team successfully completed the sale of Formula Plastics Limited, which resulted in a continuation of trade within the premises and minimal disruption to ongoing projects with the preservation of 34 jobs. By securing the sale, the team not only safeguarded local jobs but also ensured operational continuity, preserved supplier relationships, and reinforced resilience within the manufacturing sector.