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Firm with Halesowen site bought out of administration by competitor
7:20am Thursday 10th January 2013 in Business Daily
A MANUFACTURER which operates from sites in Halesowen and Cannock, has been bought out of administration by a competitor.
BI Composites Limited, which makes and distributes moulded components made from composite materials, has been bought for an undisclosed sum by Linecross Ltd.
Joint-administrators Brian Hamblin, Craig Povey and Kevin Murphy of national accountancy firm and corporate recovery specialists Chantrey Vellacott DFK had been running the business since November while they managed the sale.
Mr Hamblin said the administrators were delighted to secure a sale within three weeks of their appointment and to be able to advise the 120 employees their jobs had been secured before the Christmas break.
Linecross is a manufacturer of engineered thermoformed and polyurethane components, which has been established for around 40 years. The company is based on a five-acre site on Station Road in Rutland, where it employs around 180 people.
Linecross had a turnover of £15 million last year, which the company expects to grow to around £23 million following the acquisition.
Managing Director Stuart Fry said the business had grown steadily since a management buyout in 2003 and the acquisition of BI Composites, which has been renamed Linecross Composites, fits in well with the firm’s long-term expansion plans.
“We are delighted to have completed the deal to buy BI Composites and with it safeguard the future of a significant number of jobs,” said Mr Fry.
“Linecross and BI Composites are both innovative and creative companies, which share very similar production processes and customer bases, such as working with the likes of Bentley and JCB, and we’re excited to be joining the two together.”
Mr Hamblin, partner at Chantrey Vellacott DFK’s Birmingham offices on Calthorpe Road, said there was a host of parties interested in taking over BI Composites.
“Just like BI Composites, Linecross has a strong reputation as one of the leading manufacturers in the sector. Under the leadership of Stuart Fry, chairman David Austin and the rest of the management team the Composites business should grow,” he said.
“Once a deal had been accepted there was a commitment by both parties to complete the deal quickly. With the help of the lawyers Helen Readett and Sam Payne from SGH Martineau for the administrators and Andrew Heeler from Hegarty LLP for the buyers, the legal work was completed within an impressive 36 hours.”