Altec Engineering, headquartered in Bowburn, Co. Durham is involved in the design and manufacture of automation equipment and in the machining of high precision component for the aerospace, defence, oil & gas and other leading industrial markets.
Following the appointment of Joint Administrators, Altec’s engineering business and assets were subsequently sold to an MBO team. At the same time, another Altec group company, Ronco Engineering was also sold to the same team in a solvent share transaction. The combined deal safeguards over 120 jobs in the North East of England.
Whilst performance of Altec Engineering has stabilised recently, the administration resulted from significant creditor stress following losses last year and a debt structure incompatible with the level of turnover and profitability.
The sale of both businesses allows a new smaller group of companies to obtain further investment as they seek to grow, improving both sales and profitability. The new group will continue to trade using the Altec name.
Keith Marshall, Joint Administrator and the RSM partner, said:
‘This was a challenging transaction to deliver within a tight timescale, but the deal will safeguard two regional businesses, and importantly, 120 jobs in the North East.
‘Group companies’ Altec Hydraulics and Sigma Technologies Limited, also entered Administration but regrettably these businesses have now ceased to trade.’
Altec Hydraulics, which had 20 employees based in North Shields and Wakefield entered Administration on 23 June and was closed immediately. Sigma Technologies Limited, which had 28 employees based in Bradford, entered Administration on 1 August and closed on 7 August after a short subsequent period of trading.