Fri, 27 Jun 2025 | BUSINESS SALE
Carlisle-based construction contractor Cubby Construction has been saved from a possible administration after a deal was agreed for the firm to be acquired by investment group Svella.
Svella, which is led by ex-Stobart director Andrew Tinkler, said that it aimed to complete the acquisition of Cubby Construction next week, with the deal set to protect 214 jobs, as well as other companies within its supply chain.
Cubby Construction, a family-owned firm, encountered financial difficulties as a result of its work on Galliford Try’s Carlisle Southern Link Road project, which it exited in late 2024. The firm’s directors turned to Svella in the wake of this project, with the investment group providing funding support and taking control of certain assets earlier this year.
Now the listed group, which owns a number of other construction-related companies, plans to fully acquire Cubby Construction and roll the firm into a wider construction-focused operation.
Andrew Tinkler has promised an investment of £12 million to fund a plan to grow Cubby Construction into new sectors such as rail, infrastructure and energy, as well as targeting bolt-on acquisitions to accelerate the firm’s expansion.
A Svella spokesperson commented: “Svella Plc is pleased to confirm that, following agreement by all parties, it is targeting completion of the solvent acquisition of Cubby Construction Limited by the end of June.”
“This development represents a highly positive outcome for customers, employees and suppliers alike.”
“The acquisition will ensure continuity of operations for Cubby Construction and provide the investment necessary to support the long-term growth and success of the business.”
In accounts for the year to May 31 2023, Cubby Construction Limited reported turnover of £24 million, up from £20.8 million a year earlier, and moved from a post-tax loss of around £410,000 to a profit of over £1 million.
Find out more about the steps owners can take to sell a struggling business prior to insolvency proceedings.
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