Bradford-headquartered manufacturer acquired out of administration
Tue, 27 Aug 2024 | BUSINESS SALE
Thomas Wright/Thorite Group Limited, a Bradford-headquartered manufacturing company that has been trading since 1850, has been acquired out of administration in a deal that saves all 105 jobs at the firm.
Flowtech Fluidpower plc, a specialist technical provider of fluid power and motion control products and engineering services, acquired the business and certain assets of the company from Interpath Advisory, immediately upon their appointment as administrators.
Thorite is a provider of pneumatics, compressed air, vacuum and fluid handling products and systems. In addition to its Bradford base, the longstanding company has further sales and service centres in Newcastle, Leeds, Sheffield, Bolton, Brierley Hill and Thornbury.
In the year ending March 31 2023, the company generated £21.2 million in revenues, with operating profits of £79,000. However, it fell from a post-tax profit of around £288,000 in 2022 to a loss of slightly over £100,000.
At the time, directors stated that, while the business was recovering post-pandemic, its performance had been impacted by supply chain issues in the manufacturing sector and a reduction in demand as a result of “general uncertainty in the marketplace.”
Options including a sale of the business, refinance and investment were explored, but a solvent solution was deemed not possible and, as a result, the directors sought the appointment of administrators.
Upon their appointment, Flowtech acquired all of Thorite’s plant and machinery, vehicles, stocks and intangible assets for a total cash consideration of £350,000, funded from its existing bank facilities. The group expects profitability to return within the first full year of ownership.
Flowtech Chief Executive Mike England said that the Wilmslow-based group was acquiring a “well-respected brand and skilled workforce” and that “both businesses have a history of deep expertise and knowledge in power, motion and control.”
He continued: "For us at Flowtech, adding Thorite's expertise in pneumatics, automation and compressed air capability is an excellent fit and aligns perfectly with our strategy - a world of motion - which will enhance our scale, margin profile, and help to accelerate market share gains."
Interpath Advisory Managing Director and joint administrator Howard Smith commented: "Having traded for over 150 years, Thomas Wright/Thorite Group has forged a longstanding reputation for innovation and for the quality of its products. We're therefore delighted to have secured the future of this historic business, preserving the jobs of its dedicated workforce, with this sale to Flowtech Fluidpower.”
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