More than 150 jobs have been saved at Abacus Lighting after it was bought by a group of industrialists from administrators.
The Sutton-in-Ashfield manufacturer of specialist lighting columns – including the lighting masts at Trent Bridge cricket ground – called in administrators last Friday.
It was immediately sold to a group of industrialists and financiers.
Dominic Wong, Christopher Farrington and Paul Meadows of Deloitte were appointed joint administrators of Abacus Holdings, Abacus Lighting and Abacus Investcorp and sold the majority of the trade and assets of the Abacus group to an unconnected newly formed company on the same day.
Abacus ran into cash flow difficulties as a result of heavy investment in an ambitious international growth strategy and increasing payments to meet the liabilities of a defined benefit pension scheme, which was over £8 million in deficit.
Two years ago, it opened a new factory in Shanghai where it first invested more than 20 years ago to meet the growing markets in the Far East.
Abacus has earned its reputation for providing innovative, creative and durable columns, masts and lighting systems across a wide variety of markets. It was formed out of a company which originally supplied the coal industry with equipment.
More recently, it won orders in new markets such as Russia, the Middle East and Australia making a name for the quality and innovation behind their s lighting masts for sports grounds.
The new owners said Abacus will build on its core strengths with an increased customer focus and the resources to ensure that the innovation and quality continues to thrive.
The business is being re-capitalised with an injection of £5m investment and working capital facilities from a combination of funds managed by finance house Orbis Partners, trade investment from Diesel Marine International and asset based facilities from Centric Commercial Finance.
Group.
Turnover last year was £32m, 50% of which went into overseas markets.
The business employs 150 people in the UK who were all transferred across to the new business.
Mr Wong, partner at Deloitte, said: "We have been engaged to sell the business since December 2012.
"Abacus is a leading name in lighting and attracted a huge amount of interest, but ultimately this transaction provides the best outcome for creditors including the UK employees who transferred to the new business."
James Grenfell, senior partner at Orbis, said: "Abacus is a fantastic business that has suffered largely as a result of an underfunded pension liability that has drained its resources.
"The core business has always been profitable and provides a great platform for us to focus on Abacus's strengths of product innovation and quality lighting solutions."
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