Yahoo Finance Hundreds of jobs saved as firms owned by group hoping to emulate Warren Buffett sold out of administration
More than 400 jobs have been saved after a raft of companies across a manufacturing group were sold out of administration.
Interpath Advisory was appointed to oversee the process at the Pexion Group after it “experienced challenging trading conditions and had started to come under increasing financial pressure from its suppliers”.
The Lancashire-based group had failed to secure a sale ahead of Richard Harrison and Howard Smith from Interpath being appointed as administrators.
In addition, Stuart Irwin and Mr Harrison were appointed joint administrators over another group subsidiary, Nitronica Limited.
Immediately following their appointment, the joint administrators completed six separate transactions which safeguarded the future of 13 of the group’s operating subsidiaries and preserved 430 jobs at sites across the country.
The Pexion Group specialises in the design, development and manufacture of high specification precision, subtractive, additive, fabricated and electronic components and sub-assemblies for high-tech industries including aerospace, automotive, medical and general industrial sectors.
The news comes after a 75 per cent stake in the group was acquired by London-based investment firm RDCP for £34m at the end of 2022.
RDCP, which was founded by Sameer Rizvi and Iryna Dubylovska, states on its website that it is seeking to be the “21st century British version of Warren Buffett’s Berkshire Hathaway” and that it wants to build “the largest private company in the UK.”
Phasa Limited, based in Newmarket, was not included as part of these transactions and the joint administrators are to take steps to wind the business down, with the loss of four jobs.
In addition, the joint administrators have made 13 people employed by the parent company Pexion Limited redundant.
Richard Harrison, joint administrator and managing director at Interpath Advisory, said: “We are delighted to have concluded these six transactions which not only willl safeguard the future of thirteen of the group’s operating subsidiaries, but importantly, safeguards 430 jobs.
“Pexion is a highly diversified group which supplies some of the world’s largest OEMs and tiered supply chain providers across key industries including the aerospace, defence and automotive sectors.
“The complexity of the group, coupled with the financial challenges it was facing, meant there was a requirement to complete six separate transactions to a very short timetable.
“As such, we are enormously grateful to the very many stakeholders who worked collaboratively with us to get these transactions over the line.”
