Remainder of packaging firm acquired out of administration
Thu, 01 Jun 2023 | ADMINISTRATION
A Mansfield-based packaging business has been acquired out of administration, completing the rescue of a company that fell into insolvency earlier this year. Administrators from FRP Advisory secured the sale of iTEC Packaging (Mansfield) Ltd to packaging group Alpla UK, securing 70 jobs.
iTEC Packaging fell into administration in April, with FRP’s Martyn Rickels, Simon Farr and Allan Kelly appointed as joint administrators to iTEC Packaging (Mansfield) Ltd and sister business iTEC Packaging (Chester-Le-Street) Ltd.
Last month, the joint administrators completed the sale of the Chester-Le-Street business to Shalam Packaging Group, which acquired the business and assets as a going concern, rebranding the firm as Shalam Thermoforming (UK) Ltd.
The joint administrators have now completed the rescue of the business with the sale of the Mansfield operation to Alpla UK. The Mansfield plant manufactures packaging for the dairy industry, using compression and injection moulding to make HDPE lids for dairy bottles.
In the year to December 31 2021,the business reported revenue of nearly £26.9 million, but fell to a £1.5 million pre-tax loss. The losses were blamed on a mixture of higher material and labour costs, as well as lower turnover from lids, with retailers increasingly seeking to reduce single use plastic. Its net assets were valued at £10 million at the time.
Jens Seifried, managing director of Alpla UK, commented: "With the acquisition of the iTEC Packaging (Mansfield) business, the global packaging and recycling specialist Alpla is expanding its expertise as a packaging system provider in the UK market.”
Seifried added that the acquisition meant the company could “increasingly offer the UK dairy industry sustainable, efficient and innovative packaging solutions."
Joint administrator Martyn Rickels said: "iTEC Packaging was a long-established business and player in the dairy supply chain so we're delighted to have secured a new buyer. Alongside the transaction to sell the sister business in Chester-Le-Street, this has helped save nearly 200 jobs in a short space of time, as well as protecting the customer base with ongoing production.”
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