The Enact Fund, managed by private equity firm, Endless LLP, has acquired the business and assets of Accrofab Ltd and the Alcester site of Bromford Industries Ltd out of administration, in a move that will secure the jobs of over 220 current employees.
The deal will be funded from Endless’s Enact Fund III which seeks to invest in transformational SME opportunities.
Accrofab and Bromford Industries, which precision engineer fabricated components for the aerospace and power generation sectors, operate out of sites in Derby and Alcester. Both Accrofab and Bromford Alcester retain a global, blue-chip client base. Following completion of the deal, both companies will trade under the Accrofab brand.
Endless are supporting the current management team, led by CEO Ed Ashworth, to separate the businesses from the Bromford Group and invest in its operations to enable growth with both existing and new customers.
Richard Harrison, Enact partner in the Manchester office, said: “Accrofab and Bromford Alcester are both profitable businesses which were brought down by a separate loss-making site in the Bromford Group. The Accrofab Group is perfectly positioned to benefit from the growth in its core aerospace and power generation markets and we will invest in both sites to broaden their operational capability and capacity.”
Ed Ashworth, CEO at Accrofab and Bromford Industries, adds: “The orderbook and pipeline is strong at both Derby and Alcester and our key customers have been incredibly supportive during this challenging time.
“Endless have a history of supporting companies with a similar story to ours and completion of this transaction is an exciting milestone for all of the employees of the new Accrofab Group.”
Ryan Grant, joint administrator and Managing Director at Interpath Advisory, said: “After trading the business for twenty weeks, we’re delighted to have secured this transaction which not only sees production continue uninterrupted at both sites in Alcester and Derby, but which importantly safeguards the jobs of 220 members of staff.
“On behalf of the Interpath team, I’d like to extend our profound thanks to customers, suppliers and Bromford’s dedicated team of employees who have all provided unwavering support throughout the administration process. Their efforts, along with the commitment from Endless, has enabled us to find a solution for the business which puts in place a solid financial platform upon which it can move forward.”
Cynergy Business Finance are providing a new asset based lending (ABL) facility to the Accrofab Group. Danny Monksfield, corporate sales director at Cynergy, added: “We’re delighted to support the acquisition of Alcester and Derby with an asset based lending facility that will assist in delivering the impressive pipeline of work at both sites.
“It has been a pleasure to work closely with Enact to tailor our lending facility to fit the group’s unique working capital requirements, and we look forward to being a part of the future growth of the group.”
The Enact team (Kiran Reddy, Alex Nicholls and Adam Milner) were advised by Shoosmiths LLP (Bethan Moore, Andria Stylianou), Claritas Tax and Vista Insurance Brokers.
Interpath were advised by Irwin Mitchell LLP (Amy Keogh and Stephen George).
Cynergy were advised by Bermans (Dave Gledhill) and SIA.
As part of the deal, Endless will not purchase Bromford Industries’ Leicester site.
