Packaging firm acquired out of administration
Tue, 16 May 2023 | ADMINISTRATION
The business and assets of Chester-Le-Street-based packing firm iTEC Packaging (Chester-Le-Street) Ltd have been acquired out of administration by Shalam Packaging Group. The company fell into administration last month following a period of difficult trading conditions.
Martyn Rickels, Simon Farr and Allan Kelly of FRP Advisory were appointed as joint administrators and have now secured a sale which will see the firm’s 117 staff and all of its assets transferred on a going-concern basis.
Following the acquisition, the company will trade as Shalam Thermoforming (UK) Ltd. The Shalam group works in plastic packaging manufacturing, operating across a number of sites in four different countries.
Man'e Shalam of Shalam Packaging said that the acquisition would enable the group to manufacture its thermoforming solutions in the UK, meaning it could provide “a wide portfolio of technologies backed up by the products from the wider group and material from our in-house recycling facility."
Joint administrator Martyn Rickels added: "The sale of iTEC Packaging to Shalam Packaging in less than a month is a brilliant outcome for all involved. It not only helps with continued production for the customer base, but it also sees 117 jobs saved.”
In its accounts for the year ending December 31 2021, iTEC Packaging (Chester-Le-Street) Limited reported revenue of £23.3 million and a pre-tax loss of £7.2 million. Its net liabilities amounted to £16.3 million. The firm’s loss was attributed to the continued impact of COVID-19, as well as the costs associated with closing down iTEC’s operations at Stanley and Livingstone, which were transferred to Chester-Le-Street.
Read about M&A trends in the manufacturing sector.
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