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Sale of business and assets of covid-hit Deeside business saves all jobs
Joint Administrators announced today that a Deeside engineering firm had survived the impact of the pandemic by successfully completing a sale of its business and assets to a connected company and saving all 22 jobs.
Mike Dillon and Hilary Pascoe, the Joint Administrators from business rescue specialists Leonard Curtis, worked with directors at Sandycroft-based Fabricom Janus Neill Limited to complete the sale of the business and assets to GEM Engineering & Maintenance Services Limited, a company with common directors.
Fabricom Janus Neil was a high value engineering, management and construction business with expertise across all industry sectors including oil, gas, power, chemical and renewables.
The whole deal was completed immediately following the appointment of Joint Administrators on 5th July and represents a hugely positive outcome for all parties, maximising realisations from assets as well as mitigating creditor liabilities. The sale has also allowed all employees to transfer, preserving 22 jobs.
Derek Quayle, Managing Director of the new entity, which now trades as FJNGEM said he was pleased to announce the merger after a turbulent trading period. He commented:
This transition allows the continued growth of both business activities as separate divisions, under one single brand. As well as an additional 25,000 ft2. workshop, the cost benefits, process working efficiencies, cross working, skills and training integration will add value to both divisions, and also benefit the existing clients of both companies.
Mike Dillon from Leonard Curtis said the firm had traded profitably immediately prior to the pandemic, following which the Company had to enter into statutory working restrictions which turned the successful operation into a loss-making one.
He said: While Directors managed to restore profitability once restrictions were lifted it was not enough to maintain its commitments to historic liabilities incurred. Being able to use the connected company, Gem Engineering, which was acquired in 2021, as a route for recovery, and to maintain and develop its trading offer into a stronger combined sell, is a satisfying result for all concerned.
Gem Engineering specialises in the manufacture, installation and repair of steel and stainless steel fabrications.
On jobs Derek Quayle continued: I am delighted to say that the same people will continue in existing roles, no positions are being made redundant, and all client points of contact will remain the same.
The combined entity will now offer clients in-house services such as machining services, guarding manufacture, structural steel fabrication, and paint coatings. These new services sit alongside our traditional Heat Exchanger, Pipework, and vessel manufacturing provisions.
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