Metal firm takeover saves more than 100 jobs
MORE than 100 jobs have been saved as new owners step in to secure the future of an internationally trading family-owned manufacturer.
A pre-pack deal has seen Kirkbymoorside-based Micro Metalsmiths, which makes products for the aerospace and defence sectors, bought out of administration.
Hunter Kelly and Charles King, of EY's restructuring team, were appointed joint administrators on May 2, and immediately completed the sale of the company and certain assets to Sylatech Ltd.
The deal saved all 81 jobs at Micro Metalsmiths as well as the 30-strong workforce at MM Microwave, which was owned by Micro Metalsmiths and has also been sold to Sylatech.
The move has been heralded as offering "fantastic prospects" for Micro Metalsmiths, which makes intricate components for industry sectors including aerospace, defence and general product engineering.
The business, which was formed in 1964 by managing director Christopher Shaw, is now set to move into new purpose-built premises by 2016.
Gordon Gunn, chief operating officer of Micro Metalsmiths, said: "The new owners and directors of Sylatech Ltd, trading as Micro Metalsmiths are delighted to acquire the business.
"The new business has fantastic prospects and will move to new purpose-built premises within 18 months.
"This will enhance the global reputation of Micro Metalsmiths and demonstrate the strength of hi-tech manufacturing capability within Ryedale."
In its latest accounts, for the year to March 31, 2013, Micro Metalsmiths posted a £277,000 pre-tax loss on sales of £5.9 million.
Mr Kelly, of administrators EY, said: "Due to the combined effect of challenging trading conditions and a large pension scheme deficit, Micro-Metalsmiths' was effectively running out of cash. As a result, the directors commenced a marketing process to identify potential buyers for the business.
"Shortly after the period of marketing, the company became unable to meet its debts and, as a result, entered administration.
"We were able to secure a going concern sale to Sylatech which has safeguarded the future of all 111 employees across Micro-Metalsmiths and MM Microwave.
"A going concern sale represents a better outcome for Micro Metalsmiths' creditors than the alternative, which would have been immediate closure."
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