Wed, 02 Aug 2023 | BUSINESS SALE
The Enact Fund, which is managed by private equity firm Endless, has acquired the business and certain assets of precision engineering businesses Accrofab and Bromford Industries. The deal sees Enact take on Accrofab’s business and base in Derby, as well as the Alcester site of Bromford Industries. However, Accrofab’s Leicester facility has not been included in the acquisition.
Accrofab and Bromford Industries precision engineer fabricated components used in the power generation and aerospace sectors and have a considerable base of international blue-chip clients. Despite this, the business fell into administration in March 2023 following a downward trend in demand in the wake of COVID-19, rising energy and raw material costs and supply chain disruption. The Leicester site had also experienced operational issues, exacerbating the business’ liquidity problems.
Chris Pole and Ryan Grant of Interpath Advisory were appointed as joint administrators on March 9. After trading the business for close to five months, the administrators secured a sale to The Enact Fund, part of Endless LLP’s Enact Fund III.
Following the completion of the deal, the business will exclusively trade under the Accrofab brand. Endless will provide funding for the current management team, under the leadership of CEO Ed Ashworth, to separate the businesses from the Bromford Group, as well as investing in the business’ operations.
Joint administrator and Interpath Managing Director Ryan Grant commented: “After trading the business for twenty weeks, we’re delighted to have secured this transaction which not only sees production continue uninterrupted at both sites in Alcester and Derby, but which importantly safeguards the jobs of 220 members of staff.”
Grant added that the acquisition and Endless’ financial commitment “has enabled us to find a solution for the business which puts in place a solid financial platform upon which it can move forward.”
Enact Partner Richard Harrison said: “Accrofab and Bromford Alcester are both profitable businesses which were brought down by a separate loss-making site in the Bromford Group. The Accrofab Group is perfectly positioned to benefit from the growth in its core aerospace and power generation markets and we will invest in both sites to broaden their operational capability and capacity.”
Accrofab and Bromford Industries CEO Ed Ashworth said that the Derby and Alcester sites both had strong orderbooks and pipelines. The group will be provided with a new asset based lending (ABL) facility from Cynergy Business Finance that will assist in delivering this pipeline.
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