DISTRESSED BUSINESS FOR SALE

John Pye Red Line Spacing

A Business Specialising in stainless steel fabrication to the food and brewing industries, in the Midlands Area (“the Company”)

A business specialising in providing fabrications to the food and brewing industries predominately working with stainless steel, initially established in the 1980s and based in the Midlands area, offering a full range of fabrication and mechanical installation services.

The business has provided high-quality stainless-steel fabrications, process & product handling equipment into the food, beverage, healthcare & utility sectors for over 40 years.

As specialists in the fabrication of process and product handling equipment, the business has become an established co-manufacturer and an approved supplier & installer of mechanical process equipment for international blue-chip companies.

The Director has instructed PKF Smith Cooper to assist in trying to identify a purchaser of the shares, or business and assets, of the Company. The Company principally operates from leasehold premises which provides 7,000 sq. ft of fabrication facility and 300sq ft of office facility, with c.5 months remaining on the lease with an option to extend (with rents payable of £35k per annum).

The Company has a significant amount of experience in high-quality stainless-steel fabrications. The business’s fabrications & product handling systems are in operation worldwide.

The Company effectively comprises of two distinct businesses – specialist fabrication and engineering services. The Company has 18 employees, which consists of 14 tradespersons within the fabrication facility, 3 supporting engineers who manage the sales, operations, production and design, and 1 person managing the business accounts.

The Business is based on high quality core trades:

  • Fabrication & sheet metal work
  • Pipework fabrication & fitting
  • Coded welding – Gas Tungsten Arc Welding
  • Process equipment skid packages
  • Mechanical Installations & relocations

The business is accredited to BS EN ISO 9001:2015 and has Safe Contractor and EcoVadis accreditations.

Assets available for sale include a fully operational fabrication facility, operational infrastructure debtor book, order bank of current and future orders/projects, fixtures, fittings, office furniture, computer equipment and plant & machinery.

Turnover per the draft management accounts for the year ended 31 October 2021 was c.£2.5m, and statutory accounts show c.£1.8m for the period ended 31 October 2020.

To protect the Company’s goodwill and trade, it is proposed that any sale will need to be completed within a short timescale and, as such, this opportunity is only likely to be available for a short period of time.

Following receipt of expressions of interest, and a signed Non-Disclosure Agreement, brief sales particulars will be provided via a data room. Offers for the purchase of the business and/or its assets as a going concern, by way of sealed bids, need to be sent to Smith Cooper by 12 noon on 13 June 2022, together with evidence of funding.

When submitting your offer, please provide contact details of your solicitors and evidence of funding to expedite matters.

If you are interested in pursuing this opportunity further, please contact one of the following for additional information:

Dean Nelson
+44 (0)1332 332021
dean.nelson@pkfsmithcooper.com

Andrew Stevens
+44 (0)1332 332021
andrew.stevens@pkfsmithcooper.com

PKF Smith Cooper, St. Helen’s House, King Street, Derby, DE1 3EE

John Pye Red Line Spacing
This document is directed only to Recipients who may be interested in making an offer that would qualify for exemption under Article 62 (Sale of a Body Corporate), or to Investment Professionals as defined by Article 19 and High Net Worth Entities as defined by Article 49, of the Financial Promotions Order 2005. No other persons should rely on this document.
The purpose of this document is to assist Recipients in deciding whether to investigate the above opportunity. It is not intended to form the basis of any transaction. Recipients must make their own independent assessment of the opportunity and should obtain independent professional advice. The information in this document has not been independently verified by PKF Smith Cooper, which does not give, nor has it any authority to give, any representation or warranty (express or implied) as to its accuracy or completeness.
PKF Smith Cooper is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business and consumer credit activities.