A Somerset robotics manufacturer has been bought in a ‘pre-pack’ administration deal, saving 82 jobs.
Colin Mear Engineering (CME), which is based near Chard, makes process and packaging machinery for clients in the food and drink, pharmaceutical, cannabis and tobacco industries.
Quantuma's managing director, Tim Sloggett and director, Richard Easterby, said they were appointed as joint administrators last Friday (June 30), with a sale of the business and its assets to an unnamed private equity investor completed shortly afterwards.
READ MORE: {}
The business advisory firm said CME had faced “significant challenges” as a result of the Covid-19 pandemic and the subsequent increases in component lead times, delaying its ability to deliver and install machinery across its global customer base.
Tim Sloggett, managing director at Quantuma, said: “Despite recent improved trading performance and a strong sales pipeline, the level of creditor arrears and funding required, as a result of these short-term challenges, became too large to meet from future profits.”
CME’s chief executive Paul Knight said: “I am delighted to have secured an exciting future for our business together with our new funding partner. The last few months have been very challenging, but now we can focus on returning to profit and the development and execution of our strategy across our markets.”
Mr Sloggett added that the sale was “a great outcome” for the 40-year-old company, and would provide a platform to deliver its “exciting” growth plans.
In a ‘pre-pack’ administration deal, the sale of a business and its assets is negotiated before an administrator is appointed.
Like this story? Why not sign up to get the latest South West business news straight to your inbox.