More than 80 jobs have been saved after a Leicester-based aerospace and power generation business was bought out of administration. Private investor Rcapital has acquired the operation in Scudamore Road, on the western outskirts of the city, which had been part of the wider Bromfield group.
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, and specialise in the precision manufacturing and fabrication of components and engine parts. Collectively, they employed 309 people.
The group had faced challenges brought on by issues such as rising raw material and energy costs, supply chain disruption and the wider impact on demand as a consequence of the pandemic. When the administrators were brought in it was revealed that operational issues at Leicester, in particular, had impacted the wider business.
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Each of the sites continued trading while a buyer was sought.
Only yesterday it was announced that 220 jobs had been secured after a seperate private equity fund bought a major share of the same group – taking in the business and assets of Accrofab and the Alcester site of Bromford Industries.
Rcapital, which invests in businesses with a turnover of between £5 million and £200 million – investing up to £20 million at a time – said it had worked with key customers of the Leicester business to secure 81 jobs.
It will focus on making improvements to deliver growth and rescue a strong underlying business which it said had a “reputation for high quality engineering”. The business will rebrand to Bromford Precision Solutions Limited.
Rcapital has a track record in the aerospace, defence and precision engineering sectors, with existing investments in Trac Precision Solutions and Nasmyth Group.
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Rcapital investment manager Lewis Burnham said: “The acquisition of Bromford Precision Solutions was a complex carve out due to the challenging wider group situation.
“However, Rcapital has the expertise to help the business return to growth, through operational improvements underpinned by the long-term support of key customers.”
Ryan Grant, joint administrator and managing director at Interpath Advisory, said: “We’re delighted to have concluded this sale of the Bromford Precision Engineering business, which comes after a 20-week period of trading during which we were able to maintain continuity of supply and minimise disruption to customers.
“We’d like to extend our huge thanks to the many stakeholders who have provided tireless support to the administration team over the past five months, including customers, suppliers and Bromford’s dedicated staff.
“Their support has enabled us to come to a consensual solution which sets the business up for a fresh start under new ownership. We wish the team and Rcapital all the very best for the future.”
Rcapital was advised by Squire Patton Boggs, Hilco Valuation Services Europe and PHD Property Advisory.