Tue, 26 May 2026 | BUSINESS SALE
Substantially all of the business and assets of specialist brakes manufacturer Surface Transforms plc are set to be acquired out of administration by a connected party buyer in a deal worth £1.4 million.
Following their appointment in late April, joint administrators Michael Magnay, Joanna Bull and Jonathan Marston of Alvarez & Marsal Europe have agreed a deal to sell the company’s business and assets to CCST Limited.
CCST is a connected party, by virtue of one its directors being a former director of Surface Transforms.
The assets included in the transaction encompass the trading business, intellectual property, computer systems, contracts, stock, equipment, records and the company’s goodwill, including the right to use the Surface Transforms name.
Additionally, the buyer has agreed to pay £90,000 due to Close Brothers Ltd trading as Close Brothers Asset Finance in respect of assets financed by Close. A dynamometer owned by Surface Transforms and held at a third-party site in Germany is not included in the deal, but the buyer holds an option to acquire the asset for a further consideration of £200,000.
The deal will see the ten remaining Surface Transforms employees engaged in the company’s business immediately prior to completion transfer to the buyer.
The joint administrators have said that they are satisfied the consideration for the transaction is greater than the net orderly liquidation value of the relevant assets, having received an independent valuation from Gordon Brothers Asset Ingenuity Ltd.
The joint administrators will use the consideration to meet the costs of the administration and make payments to Surface Transforms’ secured, preferential and unsecured creditors in due course. However, realisations are insufficient to pay any return to shareholders and the company’s shares will be de-listed from AIM on Tuesday, May 26 2026.
Knowsley-based Surface Transforms fell into administration last month, having previously filed a notice of intention (NOI) to appoint administrators, suspended trading in its shares and announced a search for a buyer in March 2026.
This followed the loss of a contract with its largest customer, General Motors (GM). In FY 2025, the firm’s contract with GM represented 84 per cent of its revenues and 85 per cent of its discs sold. GM had also provided the company with operational support and financial assistance, including £14.4 million in advance payments, since November 2024.
In the year to December 31 2024, Surface Transforms’ non-current assets were valued at £14.2 million and current assets at £11.2 million, with total equity standing at £10.3 million.
Find out more about the process of acquiring intellectual property assets in our exclusive, in-depth conversation with Meera Shah, Head of M&A at accountancy and advisory firm Buzzacott
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The company undertakes specialist welding, repair and manufacturing solutions, boasting advanced capabilities with high-alloy, exotic and difficult-to-weld materials.
For sale is a Romanian thermal insulation components producer with a state-of-the-art extruded polystyrene facility, boasting a robust annual capacity of 600,000 m³.
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