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RSM UK has revealed that it has been appointed as joint administrators of Silcoms Limited and has secured the sale of the business and its assets in a pre-pack administration sale.
Based in Farnworth, Bolton, the company is an established manufacturer of complex aero-engine ring components and assemblies, as well as industrial chains, conveyor systems and components.
The trading business and assets of the company were sold to Silcoms II Limited, backed by private equity firm Breal Capital, having conducted a thorough marketing process. The business employs over 80 staff, and all jobs have been saved as part of the sale.
RSM UK was appointed following financial issues caused by the compounded impact of Covid on the aerospace sector, supply chain pressures, and significant ongoing commitments to legacy liabilities.
Chris Ratten, RSM UK restructuring advisory partner and joint administrator, said: “Silcoms is an established precision engineering business, and it is unfortunate that it has suffered over recent months due to factors beyond its control. However, the level of interest we have received as part of this process is testament to its history.
“We are pleased to have helped save the future of the business, which will ensure continuity of service at its site in Bolton and, most importantly, preserves employment for its highly skilled and loyal workforce. This has been a particularly complex deal, and we extend our gratitude to management, staff and wider stakeholders for their patience and support.”
Mick Welden of Breal Capital, added: “We are delighted to have completed the acquisition of the trade and assets of Silcoms Limited which further expands Breal’s Aerospace Group. We are excited to support such a dynamic management team with our own turnaround and manufacturing expertise and the appropriate investment to grow the business.
“This is a great example of collaboration between various stakeholder groups to preserve vital manufacturing skills in the North West and ensure continuity of supply for the Silcoms’ customers. We would like to thank all of our advisors who assisted in the completion of this complex transaction and look forward to seeing the Company flourish in the coming months and years.”
