Investment firm acquires Avon Steel Company Limited

Investment firm acquires Avon Steel Company Limited

Restructuring specialists at Quantuma have helped rescue a south west based steel company that had run into cashflow difficulties, saving 49 jobs

Restructuring specialists at Quantuma have helped rescue a south west based steel company that had run into cashflow difficulties, saving 49 jobs.

Graham Randall and Mark Roach from the Bristol office of Quantuma were approached by the directors of Avon Steel Company Ltd in early November after the company experienced trading difficulties following a period of heavy losses.

Avon Steel was founded in 1981 and services the south west and south wales from its branches in Midsomer Norton and Plymouth. The family-run firm had built up to a turnover of £12 million.

Heavy losses during 2017 were compounded by a legal dispute that led to credit insurers withdrawing cover, leaving the company unable to obtain supplies of steel to satisfy customer orders.

The company engaged Graham Randall and Mark Roach from restructuring and corporate advisory specialists Quantuma to look for a buyer in early November.

After an intense initial period speaking to more than two dozen interested parties, the company entered into a brief exclusivity period with Breal Capital before completing a deal on 22 November.

Graham Randall said: “Trading conditions this year were very tough and the company very quickly found itself facing potential closure as supplies and consequently cash dried up.

“There was a very real threat that if a share sale could not be achieved the company faced administration, but the directors took action quickly and instructed Quantuma to look for a buyer in an accelerated timeframe.

He added: “There were significant levels of interest in the business and we are delighted that Breal Capital, who already own successful companies in the sector, have used their financial backing and industry expertise to act decisively in securing the future of the company and the jobs of its 49 staff.”

Related Articles

Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

4m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

5m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

5m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

5m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

7m Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

7m Emma Smith, Managing Editor
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

1y Emma Smith, Managing Editor
Kingston Smith liquidators to distribute millions to Bond International Software PLC members

Accounting Firms Kingston Smith liquidators to distribute millions to Bond International Software PLC members

2y Stephanie Wix, Writer