Wed, 28 Oct 2020 | BUSINESS SALE
Arlington Automotive North East has been acquired out of administration by midlands-based Ricor Global. The acquisition, which was supported by an invoice facility from HSBC UK, comes after Arlington Automotive Group fell into administration in May, due to the COVID-19 pandemic’s impact on the automotive sector.
Following its acquisition, the business will trade as Ricor North East from its existing Newton Aycliffe facility. 60 jobs have been saved through the transaction. Ricor plans to develop the current site, which is anticipated to create job opportunities in the local community.
Arlington Automotive Group has clients including Nissan, JLR and Ford and employed around 600 people at its bases in Manchester, Birmingham, Stourport, Coventry, Reading and Newton Aycliffe.
The acquisition of the Newton Aycliffe business will allow Ricor Global to continue its expansion, development and diversification of its services. The group is a leading supplier to automotive manufacturers, with over 800 employees.
Headquartered in Studley, Warwickshire, Ricor Global has manufacturing facilities in the UK, Poland and Slovakia, along with a tooling facility in China. In 2019, the company acquired Walsall Pressings and DRB Engineering, with its combined turnover now over £100 million per year.
Ricor Executive Chairman David R. Johanson said: "We are very pleased to have completed this deal. It enhances our relationship with a number of existing customers and provides the opportunity to grow with new OEM’s and tier one customers.”
"We are gaining a highly capable and experienced team which will be a great asset to the Ricor Global. We also are thrilled to continue to create additional job opportunities in the United Kingdom."
In its most recent accounts, to the year ended March 30 2019, Arlington Automotive North East reported EBITDA of £1.28 million, down from £1.8 million in 2018, saying at the time that investments in equipment and buildings during 2018 provided the company with a solid platform for increased production.
The company’s revenue was £1.6 million, with gross profit of £3.3 million and total profit for the financial year of £781,000, up from £430,000 the year prior. Its non-current assets were valued at £3.6 million, with current assets of £6.7 million, total assets of £10.4 million and net assets of £5.2 million.
Jimmy Saunders, of Arlington’s administrators Duff & Phelps, commented: "We are delighted that we have been able to secure the future of the business in what is a challenging time for the UK economy.”
"Jobs and future investment have been secured in what is a tremendous outcome for all parties and we wish the team at Ricor all future success."
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