More than 220 jobs have been saved after a private equity fund bought two suppliers to the aerospace, defence and power generation industries out of administration.
The Enact Fund, managed by private equity firm Endless LLP, has acquired the business and assets of Accrofab and the Alcester site of Bromford Industries.
Bromford and subsidiary Accrofab called in administrators from Interpath Advisory on March 9. The companies were based across three sites in Leicester, Derby and Alcester, specialising in the precision manufacturing and fabrication of components and engine parts. Collectively, they employed 309 members of staff.
As part of the deal, Endless will not purchase Bromford Industries’ Leicester site.
When they were initially called in, joint administrators Ryan Grant and Chris Pole said that both businesses had faced challenges including rising raw material and energy costs, supply chain disruption and the wider impact on demand as a consequence of the pandemic.
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The new owners said both companies – which they said retain an “impressive” global, blue-chip client base – will trade under the Accrofab brand.
Endless said it was supporting the current management team, led by chief executive Ed Ashworth, to separate the businesses from the Bromford Group and invest in its operations to enable growth with existing and new customers.
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Richard Harrison, Enact partner in the Manchester office, 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 chief executive Ed Ashworth said: “The orderbook and pipeline is strong at both Derby and Alcester and our key customers have been incredibly supportive during this challenging time.
“Endless has a history of supporting companies with a similar story to ours and completion of this transaction is an exciting milestone for all of the employees of the new Accrofab Group.”
Ryan Grant, joint administrator and managing director at Interpath Advisory, said: “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.
“On behalf of the Interpath team, I’d like to extend our profound thanks to customers, suppliers and Bromford’s dedicated team of employees who have all provided unwavering support throughout the administration process.
“Their efforts, along with the commitment from Endless, has enabled us to find a solution for the business which puts in place a solid financial platform upon which it can move forward.”
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Cynergy Business Finance is providing a new asset based lending facility to the Accrofab Group.
The Enact team of Kiran Reddy, Alex Nicholls and Adam Milner was advised by Bethan Moore, Andria Stylianou at Shoosmiths, Claritas Tax and Vista Insurance Brokers.
Interpath was advised by Amy Keogh and Stephen George at Irwin Mitchell.
Cynergy was advised by Dave Gledhill at Bermans and SIA.