Around 125 jobs have been saved after an industrial pump maker was bought out of administration. Slack and Parr, which is based in Kegworth, Leicestershire, was forced to call in administrators in early July after losing money and facing funding problems.
Engineering giant Avingtrans, which has its own pump manufacturing division, said it was buying the main components of Slack and Parr and its USA and Asia subsidiaries in a deal which could be worth up to 拢4.9 million.
Slack & Parr operates from a 64,000 sq ft manufacturing site in Kegworth, and has facilities in Charlotte, North Carolina and Shanghai, China. The acquisition has secured the jobs of 100 people in the 海角视频 and 27 in the US and China.
The business, was founded in 1917, had continued to trade through the administration. It is a market leader in high-precision gear metering pumps, hydraulics flow dividers and industrial pumps and has customers around the world. The vast majority of its sales are overseas.
Its most recent accounts 鈥 up to March 2022 鈥 reported a pre-tax loss of 拢1.9 million on revenues of 拢13.6 million. At the time the business said it had 189 staff.
Edward Barrington, managing director of Slack and Parr, said: 鈥榃e are delighted to be part of Avingtrans and eagerly anticipate the opportunities this partnership will unlock for the business.
鈥淭ogether, we are confident we can build on our heritage of precision engineering and continue to provide our clients with the quality and reliability they have come to expect from us."
Under the deal Avingtrans subsidiary Hayward Tyler Fluid Handling will acquire the trade, IP, fixed assets, stock and investments in Slack & Parr鈥檚 US and China Subsidiaries.
Austen Adams, divisional managing director at Avingtrans, said: 鈥淲e are pleased to have completed this acquisition, which brings another globally-respected, British heritage brand under the direction of the Avingtrans team.
鈥淭he sorts of challenges this business has faced are familiar to us and we are experienced resolving them, having successfully turned around other businesses under similar circumstances.
鈥淪lack and Parr鈥檚 global footprint, combined with its well-invested operational capability, powerful brand, highly-skilled workforce and large installed base provide a great base for re-establishing the business on a firmer footing going forward.鈥
Interpath Advisory had been appointed as joint administrators to the Slack and Parr companies on July 3.
Interpath managing director Howard Smith said: 鈥淔ollowing our appointment, we were able to trade the businesses for over four weeks, maintaining continuity of supply and minimising disruption to customers.
鈥淔ollowing a marketing process, this then enabled us to conclude the sale to Hayward Tyler Fluid Handling, which not only ensures production will continue at Kegworth, but importantly, safeguards over 125 jobs across the wider group.鈥
Keith Spedding of law firm Shakespeare Martineau and Miles Standard of Park Hill Corporate Finance acted for Avingtrans in the deal and the joint administrators were advised by Squire Patton Boggs.
